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  • Dayton SignsThank you to the Minnesota Legislature and Gov. Dayton for passing the bill that will add 450 MW of clean energy to Minnesota’s grid by 2020! This 1.5% Solar Standard is a huge leap forward for the solar industry and the environment in Minnesota! The goal is to generate 10% of the state’s energy from solar by 2030, and this is a great step in that direction.

    For the details on the bill visit: http://allenergysolar.com/mn-solar-standard-1-5

    Thank you again to everyone involved in helping this bill pass. To the legislature, to the governor, to everyone who reached out in any way and showed our representatives that there is demand for solar in Minnesota… Thank You!!

    It is easy to make predictions for solar power growth, but when it continues to occur- people sit up and take notice. According to the U.S. Solar Market Insight, utility PV installations more than tripled in 2010, up 72% from 2009. Grid-connected PV installations increased by 102% and the industry rose from $3.6 billion in 2009, to $6.0 billion in 2010.
    This makes the total solar power sector the fastest growing energy sector at 67%.

    This almost-unbelievable rise, which created enough solar power for roughly 200,000 homes, can be attributed to three primary factors. The Federal section 1603 Treasury program, that put more than 93,000 Americans to work in 2010, is responsible for providing funds for both product and installation costs. The program is now set to end at the conclusion of 2011; extended from its original expiration date, 2010.

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    Xcel Energy has voluntarily created a solar rewards program in Minnesota. This reward pays it’s customers a large sum of money to help offset the cost of installing solar. In exchange Xcel takes ownership of the Renewable Energy Credits – a bi-product of generating renewable energy. It is a huge incentive and truly brings the upfront investment down to a manageable amount. But what is Xcel doing elsewhere?

    The following article was posted on Renewable Energy world yesterday.

    Colorado’s PV Industry Threatened by Xcel Energy

    By Blake Jones, Namaste Solar |   February 21, 2011

    The immediate result is that sales activity in Xcel’s customer-sited PV market has come to a grinding halt. Xcel Energy’s Solar*Rewards program will not accept new project applications until the Colorado Public Utilities Commission (CPUC) addresses the issue.  Unfortunately, Xcel’s actions parallel those taken by Colorado’s other IOU and second largest utility, Black Hills Energy, which took similar actions last October that have effectively killed its portion of the state’s PV market.  In the meantime, until this issue is resolved by the CPUC, local solar companies only have previously-approved projects, if any, to sustain them while the future of Colorado’s solar industry and customer-sited PV market hangs in the balance.

    Prior to the unexpected announcement, incentive levels for the Xcel Energy Solar*Rewards program had been set according to capacity-based tiers that Xcel published – and updated daily – on its website (see snapshot below — more info in sidebar at end of the article).  Modeled after the California Solar Initiative (CSI), the capacity-based tiers were established in 2009 with the intention of providing a road map of how the solar incentives would decline over time, thereby providing critically important transparency and visibility.

    Solar companies used this information to plan their business operations and communicate to potential solar customers.  Last Wednesday, Xcel Energy detoured from this road map with their unexpected, unilateral announcement.  It was equivalent to immediately skipping over the remaining five steps that collectively represented over 36 MW in just one of the four Solar*Rewards incentive categories (first table in sidebar below).

    Why is Xcel Energy doing this?  In its press release, it claims that, “The changes are prompted by the decline in solar panel costs and increasing subsidization from government programs. Together, these developments have reduced the level of Xcel Energy incentives needed to support customer participation in Solar*Rewards.”  Indeed, solar panel costs have declined over 50% in the past 2-3 years, but it’s unclear what government programs Xcel is referring to that are increasing their subsidization.

    Either way, the decreasing cost of installing solar has allowed the incentive levels to be reduced proportionately over the same time period, in keeping with the program’s original outline.  As future cost reductions were realized, the capacity-based tiers should have allowed for a smooth transition, allowing demand and cost reductions to drive the decrease in incentives.  Demand would only be sustained if costs continued to decline – that’s part of the beauty of such a system – so it’s unclear why Xcel Energy felt the need to accelerate the incentive reductions and ignore their own previous road map to the detriment of the local solar industry.

    Xcel Energy’s actions threaten to reverse the progress that Colorado has made since the Solar*Rewards program was launched five years ago as a result of a voter-approved Renewable Energy Standard (RES).  Colorado’s RES is one of the best in the country (30% by 2020) and Colorado has been among the top five PV markets in the U.S. for many years.  Since its launch in 2006, the Solar*Rewards program helped create over 5,300 local solar jobs at over 400+ companies that have collectively installed more than 70 MW of customer-sited PV systems (see graph below).

    If Xcel’s actions are approved by the CPUC, I predict that over 50-75% of these jobs will be lost by the end of this year, causing Colorado to lose valuable solar industry infrastructure that took five years to build.

    According to the press release, Xcel Energy predicts that over 59 MW of PV systems will be installed in 2011.  Despite the information provided, it’s difficult to discern how much of this is customer-sited and how much is utility-scale.  For example, the 59 MW likely contains a single 30+ MW utility-scale PV project in southern Colorado that SunPower and Iberdrola have been contracted to install.  Xcel seems to claim that the existing backlog of approved, but not-yet-installed, customer-sited projects totals over 6 MW and that over 10 MW of customer-sited solar will be sold in 2011, but I personally don’t see how that can happen at their proposed incentive levels.

    This unilateral move by Xcel Energy is a departure from the expectations of Colorado’s voters, explicit in 2004’s voter-approved ballot initiative, in which they states that the RES and solar incentive program should contribute to building a sustainable solar industry in Colorado. Businesses depend on transparent, stable, long-term policies to make hiring and investment decisions, and this move undermines the previously-established capacity-based tiers that Xcel Energy created and obtained approval for from the CPUC.

    With the national and international spotlight that President Obama put on the Colorado solar marketplace in 2008 (when he signed the historic American Recovery and Reinvestment Act at the site of a 100 kW PV system in Denver), this is an embarrassment to our state that might spoil Colorado’s “New Energy Economy” success story.  Xcel’s regrettable and surprising act demonstrates the urgent need for a reformed incentive program that will help build a sustainable solar industry, and in Colorado’s case, I strongly believe that this requires that the incentive program be independent from Xcel Energy’s and Black Hills Energy’s control.

    The solar industry will be organizing a protest to Xcel Energy’s actions on the steps of the state capital in Denver next Friday, February 25, at 12:00 p.m.  Please join us there to express your support. This is not just about Colorado – it’s also about stopping a national precedent from being set by two Colorado utilities that have pulled the plug on a growing solar industry.  For more information or to get involved, please contact the Colorado Solar Energy Industries Association (CoSEIA) at www.coseia.org.


    Sidebar: Xcel Energy Solar*Rewards Program

    More info at this link.

    Snapshots of three of the four incentive categories

    • Small – Customer-Owned (<10 kW)
    • Small – Third Party Developer (<10 kW)
    • Medium – Tier 1 (10-100 kW)

    Snapshot of the just the tiers:

    Small — Customer-Owned (<10 kW)
    Step Upfront Price
    per watt DC
    MW in step MW Confirmed MW Remaining
    in Step
    Date Step Began
    1 $1.50 0.5 0.518378 -.018378 10/25/09
    2 $1.00 1 1.042552 -.042552 11/11/09
    3 85¢ 1 1.028433 -.028433 12/2/09
    4 70¢ 1 1.048483 -.048483 12/31/09
    5 55¢ 1 1.006607 -0.006607 3/18/10
    6 45¢ 3 3.051158 -0.051158 5/14/10
    7*(current) 35¢ 4 1.786143 2.213857 10/14/10
    8 25¢ 4 4
    9 15¢ 4 4
    10 10¢ 8 8
    11 10 10
    12 10 10
    Small — Third Party Developer (<10 kW)
    Step Price per
    kWh generated
    MW in step MW Confirmed MW Remaining
    in Step
    Date

    Step Began

    1 11¢ 3 3.0323 -0.0323 starting price
    2 2 2.082185 -0.082185 9/08/10
    3 1 1.006397 -0.006397 12/23/10
    4* (currentl level) 1 0.365708 0.634292 01/26/11
    5 1 1
    6 3.5¢ 2 2
    7 2.5¢ 4 4
    8 4 4
    9 8 8
    10 .05¢ 8 8
    11 .05¢ 10 10
    12 .01¢ 10 10

    As political rivalries and battles over control play out on capitol hill we in the Renewable Energy (RE) industry stand poised for action, hoping that our government will stand behind us in our industry goals. Tremendous support of the RE industry has helped propel this revolutionary technology. Homes, businesses, governments, and non-profits can now invest in reliable energy and feel confident the effects on our environment are positive. So what does the shift in control mean for the coming years?

    Most of the focus is being placed on the coming weeks. The senate passed the tax breaks which included an extension of the RE tax grant. We fully expect the bill to pass and the extension will mean another prosperous year for RE. But there is another big question and concern hanging over all our heads… JOBS!

    One industry cannot be the sole source of job creation but as a growing industry, one with a lot of expected job creation, we are proud to say that in 2010 the solar industry added 50,000 new jobs, according to the national solar jobs census. To date there are over 90,000 jobs in solar energy alone. The 5 sectors of renewable energy technologies – solar, geothermal, wind, bioenergy, and hydro – are growing and unequivocally adding jobs. yet there remains a perception that clean energy is not adding enough jobs to our economy.

    It is difficult to see the added benefits that clean energy adds to our economy when there are over 30 million people unemployed in our nation. That number alone is staggering, which is why 50,000 new jobs in one year can go unnoticed when it’s up against a number as large as 30 million. It seems that the unemployment problem is just too big for clean energy to solve alone. Which brings up the next issue – Manufacturing.

    Manufacturing jobs in the US have slipped to levels not seen since before 1945. Between 2000 and 2009, manufacturers shed upwards of 7 million jobs. Add to that the staggering unemployment rates and it’s no wonder the population is looking to the RE sector for manufacturing jobs. Carrie Cullen Hitt, executive director of The Solar Alliance, an organization that works with companies and legislators to create solar policy, said “The pressure on solar to create manufactuiring jobs is misplaced. Manufacturing is fine, but there are so many other jobs in other aspects of the industry that its a misrepresentation that you’re going to get the most amount of jobs out of encouraging manufacturing. There are development jobs, installation, financing and the whole value chain. If you have good policy, all these aspects of development will create jobs in the state.”

    The RE industry is working very hard to show that we are a real and established economic engine. We are creating jobs and we are improving our environment at the same time. Yet we still seem to have opposition and doubt. One theory is that the fossil fuel lobby is spending large amounts of money to discredit the RE industry and convince the American public that green jobs are a farce. We don’t believe that the American public is that ignorant. Let the fossil fuel lobbyists spend their millions of dollars, we’ll continue to invest in what is real and tangible; a job and a pay check. The RE industry doesn’t have the money to spend millions on lobbyist and special interests agendas, we only have the money to keep this nation moving forward. With the help of regular Americans like yourself and with support from our representaitves on capitol hill we can continue to propel the RE industry into the future.

    We at All Energy Solar, Inc hope you enjoyed our op-ed piece. We feel very strongly that we are creating a future fit for our children and that our efforts will have great implications for not only our environment but our economy as well. We referenced several articles in this piece and implore you to read on. View the articles listed below…

    We are open to your opinions and suggestions. Feel free to contact us at info@allenergysolar.com or call us any time at 800-620-3370.

    Highlights at 11

    Green Jobs are Real

    Will Clean Energy Manufacturing Create U.S. Jobs?