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Coalition Supports NIPSCO Clean Energy Efforts including Feed-in Tariff and Net Metering

Posted by Laura Arnold  /   November 17, 2011  /   Posted in Feed-in Tariffs (FiT), Northern Indiana Public Service Company (NIPSCO), Uncategorized  /   No Comments

InsideINdianaBusiness.com Report

 Sierra Club Field Organizer Virginia Shannon tells Inside INdiana Business about the aim of the Clean Energy Future Coalition.

Business, labor and environmental groups have formed a coalition backing NIPSCO's clean energy initiatives. The Sierra Club is taking the lead in supporting the company's efforts to connect customers to solar, wind, hydro or biomass power generating systems. The coalition is also touting NIPSCO's net metering program.

November 17, 2011

News Release

Michigan City: The Sierra Club’s Beyond Coal group held a community reception and press conference on Wednesday November 16th, 2011 at the Long Beach Old School Community Center to launch the Clean Energy Future Coalition. The newly formed Clean Energy Future Coalition represents a comprehensive effort from businesses, labor groups, and environmental groups occurring throughout Indiana to move beyond burning coal to clean energy production.

“This is an exciting moment for northern Indiana with NIPSCO customers, businesses and organizations coming together to support renewable energy” said Chair of the Hoosier Chapter of the Sierra Club Steve Francis “The Sierra Club strongly supports NIPSCO’s clean energy initiatives, with the good jobs that go with them, and will continue to collaborate with NIPSCO to move Indiana towards a clean energy future.”

NIPSCO has taken a lead in clean energy by offering two renewable energy options to its customers: a net metering program and a pilot feed-in tariff program. Both programs are designed to connect customers with solar, wind, hydro, or biomass systems to the grid and receive credit or payment for energy produced from the utility. The Clean Energy Future Coalition formed to thank NIPSCO’s CEO Jimmy Staton for creating their renewable energy programs and urging Staton to ensure NIPSCO resolves any technical issues keeping solar and wind projects from being approved and beginning.

Indiana is ranked in the top 10 states for clean energy investment and potential job creation. “Clean Energy programs, like NIPSCO’s net-metering and Feed in Tariff, will create economic opportunity to put Hoosiers back to work in the jobs and industries that will keep us competitive in the 21st century” said Regional Director of the Blue Green Alliance Tom Conway, “Clean energy investments can create good jobs, reduce our dependence on fossil fuels, and leave our children and grandchildren a strong economic and environmental legacy.”

Local speakers included Steve Francis, Hoosier Sierra Club Chapter Chair, Tom Conway, Regional Director for the Blue Green Alliance, Russ Draper, Renewable Energy Consultant at Home Energy LLC, and Matthew Kubik, Associate Professor at Indiana Purdue Fort Wayne (IPFW) and Co-Author of “The Green Age: Transforming Your Life Choices for the 21st Century”.  They addressed job creation, solar and wind energy, and the critical need and potential to move northwest Indiana forward to clean energy.

The Sierra Club also unveiled 1,000 petitions from customers thanking NIPSCO CEO Jimmy Staton for positioning NIPSCO as a leader in clean energy and urging NIPSCO to fully develop its feed-in tariff and net metering programs that will start wind and solar projects and make northern Indiana into the hub of Indiana’s clean energy economy.

“With the NIPSCO feed in tariff program being unveiled in the last few months clean energy has a bright future in Northern Indiana” said Russ Draper at Home Energy LCC of Middlebury, IN,” We have seen a definite increase in interest in the residential market, and when you can offer a business a way to help cut fixed costs and at the same time reduce their carbon footprint, that's a win-win for everyone.”

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The Sierra Club’s Beyond Coal Campaign is a nationwide effort to make sure that the existing fleet of outdated coal plants gets cleaned up or phased out – and is replaced by solar and wind energy that’s ready to fill our energy needs, create new jobs, and jump-start the green economy.

For more information, visit www.beyondcoal.org

Source: The Sierra Club

From REW: Life After the 1603 Grant: The Road Ahead | Sol Systems LLC

Posted by Laura Arnold  /   November 09, 2011  /   Posted in Uncategorized  /   No Comments

Life After the 1603 Grant: The Road Ahead | Sol Systems LLC.

By Sara Rafalson
November 3, 2011

The following is a mutli-part series on the cash grant and the road ahead.

From RenewableEnergyWorld.com http://www.renewableenergyworld.com/rea/blog/post/2011/11/life-after-the-1603-grant-the-road-ahead?cmpid=WNL-Thursday-November3-2011

In February of 2009, the federal government passed ARRA, and the 1603 Investment Tax Credit (ITC) cash grant program with it. The program effectively transformed what was traditionally an investment tax credit into a cash grant, awarded by the treasury, within 60 days of commercial operation. It was perhaps the single most important piece of legislation for solar in recent history that spurred huge growth in the sector, recently estimated to be 69 percent year over year. In January of 2012 the 1603 ITC cash grant will expire, and with it the ability for developers and investors to secure the cash grant in lieu of a tax credit.

So what’s next?  Well, let’s take a look.

Part I: Looking Back

Under the Emergency Economic Stabilization Act of 2008, a 30 percent tax investment credit for qualifying renewable energy projects was extended through 2016, allowing owners of solar projects to offset 30 percent of a solar system’s cost through tax credits.  So long as a system owner had enough tax liability over the course of five years, he or she would be able to deduct 30 percent of the system’s gross cost from their federal taxes.

Because most solar project companies or developers working on commercial and utility-size PV projects do not generate enough taxable profit on their balance sheets to utilize the 30 percent tax investment credit (ITC), they had to seek a financial intermediary with the necessary tax liability to buy a stake in the project company and monetize these tax credits, what is commonly referred to as “tax equity investors.”  Tax equity investors are companies with large balance sheets, traditionally banks and more recently larger corporations, which purchase tax credits to shelter otherwise taxable income, while also providing an essential financing tool for large renewable projects.

In 2007, the Solar Energy Industries Association (SEIA) estimated there were up to 28 tax equity investors, primarily financial institutions led Morgan Stanley, JP Morgan and others.In 2007, the Solar Energy Industries Association (SEIA) estimated there were up to 28 tax equity investors, primarily financial institutions led Morgan Stanley, JP Morgan and others.  However, the collapse of Lehman Brothers and the financial crisis of 2008 effectively ended most of these companies participation in the tax equity market for renewables.   Several companies, such as AIG and Prudential, departed the tax equity market entirely because of bankruptcy or uncertainty about whether they would have sufficient taxable income.

II. The 1603 Program

In response, President Obama approved the Section 1603 Cash Grant Program (as part of the American Recovery and Reinvestment Act of 2009), to effectively stabilize renewable energy market by providing $1.9 billion in cash grants in lieu of tax credits.  Under the 1603 Program, owners of a renewable energy system could simply apply for a cash grant to cover 30 percent of the system’s cost, regardless of their tax liability.

The 1603 Program catalyzed the solar market, with approximately 80 percent of solar projects opting for the cash grant, driving growth of 104 percent between 2009 and 2010 in the United States. As of mid-August 2011, 87 percent (2,095) of the 2,410 cash grants awarded under the 1603 program were provided to solar energy projects (although only 27 percent of the nominal value if these grants). Since October of 2010, the federal government has invested over a billion dollars in solar projects through the 1603 Grant Program.Cash grant funds paid by technology

Unfortunately for the solar industry, the Section 1603 Program is set to expire at the end of this year, and it appears highly unlikely that it will be renewed again.   With the expiration, interested parties without the necessary tax liability will again have to rely on tax equity investors to fully monetize the ITC.   The problem is twofold: (i) the tax equity market has not yet fully recovered and there are only an estimated 10 to 15 investors looking for tax equity deals and (ii) integrating tax equity into deal structures will significantly increase transaction costs, raise the costs of development, and potentially limit smaller deal sizes.

The result will be a bottleneck in 2012-13, where a substantial number of solar developers and other interested parties look to construct or own commercial-sized solar system, but only a select few can secure the requisite tax equity financing. This will mean a number of projects will not be developed, and those projects that do secure tax equity will see increased yields. Some projects are likely to seek safe harbor under the 1603 Program by securing five percent of the total costs of the system, but this strategy brings with it its own challenges.

So now, as we look towards the horizon, what’s next? What will happen to this 80 percent of the industry opting for the cash grant? Companies like Sungevity, Sanyo and Vivent are quickly lining up tax equity for the upcoming year, and some believe market growth will slow by up to 50 percent in the second half of 2012. Might these challenges be mitigated by solar modules priced below $1.10/watt? What creative solutions will our industry implement to meet these financing challenges?

Sol Systems is a solar energy finance firm and the largest and oldest SREC aggregator.  We provide homeowners, businesses, and solar developers with sophisticated financing solutions that help make solar energy more affordable.  We also help energy suppliers and utilities meet their solar RPS requirements efficiently by providing access to diverse SREC portfolios.  

Coalition For Affordable Solar Energy Expresses Opposition To China Trade Complaint

Posted by Laura Arnold  /   November 08, 2011  /   Posted in Uncategorized  /   No Comments
         by SI Staff   on Tuesday 08 November 2011
The Coalition for Affordable Solar Energy (CASE), which the group says initially represents 25 organizations and more than 9,200 jobs in the U.S. solar sector, has formally launched.CASE was formed in response to the October anti-dumping complaint and countervailing-duty petition filed by SolarWorld and its partners in the Coalition for Solar Manufacturing (CASM). According to CASE, this trade case poses a threat to the entire U.S. solar market."Global competition is making affordable solar energy a reality in America and around the world," the group said in a statement. "SolarWorld's action to block or dramatically curtail solar cell imports from China places that goal at risk.

"Protectionism harms the future of solar energy in America and negatively impacts consumers, ratepayers and over 100,000 American solar jobs," CASE continued. "The coalition is committed to growing a domestic solar industry, promoting innovation and making solar an affordable option for all Americans."

"The vast majority of the existing 100,000 jobs in the solar industry are in sales, marketing, design, installation and maintenance," added Jigar Shah, co-founder and chairman of CASE. Shah is also head of the Carbon War Room and was the founder of SunEdison. "These jobs depend on affordably priced solar panels, and companies would have to lay off workers if panel prices rose as a result of this petition.

"Placing protectionist barriers against more efficient and affordable solar cells - whatever their origin - discourages innovation and investment," Shah added.

CASE represents the following companies: Alpine Solar Energy LLC, AltPOWER Inc., American Solar Systems Inc., Canadian Solar, Carbon War Room, Carolina Solar Energy LLC, Gaia Worldwide LLC, groSolar, Lighthouse Solar, Lumos, MEMC/SunEdison, PetersenDean, Recurrent Energy, Rochlin Corp., Russell Pacific, SolarCity, SolarFirst Inc., Sungevity, Suntech America, SunRun, Syncarpha Solar LLC, Trina Solar U.S. Inc., Verengo, Westinghouse Solar and Yingli Americas.

Meanwhile, approximately 75 employers have officially registered their support for the CASM by joining as associate members, according to the group.

The CASM explains that it offered the associate membership in response to the many employers who sought a way to help the coalition. Members range from CPP Solar of New York, a manufacturer in the industry's supply chain, to Energy Works Michigan, administrator of the nonprofit Michigan Renewable Schools Program, to Green LEED Associates, a sustainable architectural design firm in Texas.

According to the CASM, Chinese manufacturers export most production to tap demand incentives in markets in the West. Only one Chinese company employs more than a handful of workers in U.S. production: a small unit with annual capacity to do 50 MW of final panel assembly - approximately 2% of that company's estimated total capacity of 2.5 GW.

In addition, the CASM says that the  United Steelworkers (USW) - with 850,000 active members, the nation's largest union - has formally expressed its support.

"Unfortunately, China continues to operate in a manner that is utterly inconsistent with its [World Trade Organization] obligations, which comes at the expense of developing our nation's clean energy sector and creating and sustaining clean energy jobs for American workers," said Leo W. Gerard, international president of USW, in the union's letter to the U.S. International Trade Commission. "We urge you to vigorously apply and enforce our trade laws in these solar cases so that American workers and domestic industries can have a fair chance to compete in the U.S. market."

An ITC staff hearing is expected to be held Nov. 8.

U.S. Solar Manufacturers Welcome Support of United Steelworkers in Landmark Trade Case

Posted by Laura Arnold  /   November 08, 2011  /   Posted in Uncategorized  /   No Comments

This action taken has precipitated another group forming. See the next blog post regarding formation of The Coalition for Affordable Solar Energy (CASE). These actions should food for thought at the upcoming meeting of the Indiana Renewable Energy Association on Saturday, November 12 in Indianapolis. Which side are you on? Laura Ann Arnold

7 Nov 2011 | 7:20 PM ET

 WASHINGTON, Nov 07, 2011 (BUSINESS WIRE)
-- The Coalition for American Solar Manufacturing (CASM), a group of seven  domestic U.S. solar manufacturers led by SolarWorld Industries America  Inc., today welcomed the support of the United Steelworkers (USW) -- with  850,000 active members, the nation's largest union -- for the coalition's  petitions for anti-dumping and countervailing duties on Chinese imports.

In the union's letter to the U.S.  Department of Commerce and the International Trade Commission (ITC), Leo W. Gerard, International President of the United Steelworkers, said, in part: "Unfortunately, China continues to operate in a manner that is utterly inconsistent with its WTO obligations, which comes at the expense of developing our nation's clean energy sector and creating and sustaining clean energy jobs for American workers. We urge you to vigorously apply and enforce our trade laws in these solar cases so that American workers and domestic industries can have a fair chance to compete in the U.S. market." According to U.S. trade statistics, Chinese exports of solar cells and panels to the United States rose more than 350 percent from 2008 to 2010. In the first eight months of 2011 alone, imports from China totaled $1.6 billion, more than in all of 2010. In fact, exports in the month of July 2011 alone exceeded those from all of 2010. CASM contends that Chinese dumping has played a significant role in causing seven U.S. solar plants to close or downsize during the past 18 months, eliminating thousands of jobs, directly and indirectly, in Arizona, California, Massachusetts, Maryland, New York and Pennsylvania.

"Manufacturing is the fuel that drives our economic engine," said Gordon Brinser, U.S. president of SolarWorld, the leader of CASM and the named petitioner in the case. "Members of the Steelworkers Union understand that the key to American economic growth is
healthy competition. Their support for U.S. trade actions that keep quality, high-paying jobs in America and allow American ompanies to compete fairly in the global marketplace is greatly appreciated." The next step in the case is an ITC staff hearing on Nov. 8, 2011. The Commerce Department is expected to announce whether it will initiate investigations on Nov. 9. If initiated, the
investigations will take about 12 months to complete.

Read a copy of the entire letter on the CASM website: www.americansolarmanufacturing.org .

The Coalition for American Solar Manufacturing is made up of seven companies that manufacture solar cells and modules in the United States. These member companies have plants in nearly every region in the United States, including the Northwest and California, the Southwest, Midwest, Northeast and South and support several thousand U.S. manufacturing jobs. For details about CASM, go to www.americansolarmanufacturing.org; email media questions to media@americansolarmanufacturing.org; other questions or comments may be emailed to contact@americansolarmanufacturing.org .

SOURCE: SolarWorld Industries America Inc.

Download the original news release: 10-19-11-casm-files-illegal-dumping-subsidy-petition

NE Indiana Enters Local Debate Over Wind Energy; Whitley County Concerned Citizens Oppose Proposed Wind Project

Posted by Laura Arnold  /   November 08, 2011  /   Posted in Uncategorized  /   2 Comments

Last updated: November 7, 2011 11:41 a.m.

State enters debate over wind energy

Angela Mapes Turner | The Journal Gazette

The flat farmlands of northeast Indiana aren’t as vast as the sweeping plains of Texas, the state that leads the nation in wind power.

Developers say there’s plenty of energy to be harnessed in the region’s wind, but how – and if – that happens depends not only on government incentives to big wind developers but home rule in the region’s rural counties.

David Sewell, Whitley County’s executive director of planning and building, describes himself as an “eternal optimist.” He’s been a public planner for 35 years, nearly half that time in Whitley County, and he’s seen his share of land-use battles – landfills, major industrial sites, large farming operations.

The protracted fight over wind energy trumps them all.

“These issues, these structures, they go a little beyond what we normally deal with, as far as land-use jurisdiction goes,” Sewell said. “This one is definitely unique.”

Whitley County leaders, responding to interest by an American wind-energy company hoping to locate in the county, began working on an ordinance last year that would regulate the permitting process for wind turbines – how tall they could be, how far they would be set back from property lines, how they would be maintained.

The draft ordinance was scrapped when it was disclosed the plan commission’s president, David Schilling, had signed paperwork months earlier, in the midst of crafting the ordinance, that indicated he would be willing to lease his land to a wind farm.

Sewell said the plan commission decided to begin the process anew. A committee was created to study the issue and create a report. The committee is made up of three members of the plan commission, three wind farm supporters and three opponents.

The committee’s report will be taken into consideration by the plan commission in a few weeks, along with input from a consultant who was hired after the original draft ordinance had to be rejected.

Sewell sat in on all the committee’s meetings, and he said he’s worked hard to remain neutral on the issue, as he does with any divisive issue in his line of work. The meetings have been cordial, Sewell said, but even the eternal optimist has doubts the committee will reach any sort of consensus.

“The issue appears to come down to, ‘What do you believe?’ ” Sewell said. “There is not one set of facts as far as the impact of any potential wind turbine or farm.”

The newness of the technology, at least in the U.S., plays largely into the division.

A decade ago, Indiana was a literal blank slate on the U.S. Department of Energy’s map of wind-power capacity, or how much power the turbines can produce under ideal weather conditions. It was the same in 2005, even as surrounding states showed small gains.

A lot changed in the second half of the decade. By the end of 2010, Indiana had 1.34 gigawatts of wind-power capacity, more than the 1.21 gigawatts needed to power the fictional DeLorean time machine in the movie “Back to the Future.”

Indiana’s capacity could power between 300,000 to 400,000 homes, based on calculations by the American Wind Energy Association. The organization says that because the wind does not blow all the time, it cannot be the only power source for that many households without some form of storage system.

The state has outpaced all its neighbors except Illinois, which had 2 gigawatts capacity, according to the Department of Energy’s data.

It’s been left to individual municipalities to handle how and where wind companies can locate. Indiana’s first commercial-scale wind farm opened in Benton County, northwest of Lafayette, in 2008. Allen County currently does not have an ordinance regulating wind-energy systems.

Whitley County’s Sewell said having such a short time period to reflect on how the wind farms are affecting rural residents makes it difficult to make an educated decision.

“The issues are so new,” he said. “The people who say, ‘We don’t know’ – they probably don’t.”

Multiple concerns

Members of Whitley County’s wind-energy study committee have agreed not to speak with media to further their cause before presenting their report this month, member Joan Null said.

Null is a member of Whitley County Concerned Citizens, the group opposed to the proposed wind development in that county.

The organization was formed by residents and property owners after Wind Capital Group proposed building its 100-megawatt wind farm (1 gigawatt equals 1,000 megawatts) in southern Whitley County.

“Industrial wind turbines are exactly that – utility-scale industrial power plants – turbines that generate electricity,” the group says on its website. “As such, they should be sited in the appropriate locations, with setbacks sufficient to have no impact on residential areas.”

The group cites multiple concerns about living near industrial wind farms, such as loss of sleep from noise and vibrations, declining property values and an effect called “shadow flicker” – the strobe-like flashing made when massive twirling blades cross the sun and create shadows.

Along the way, Whitley County opponents have gained support from tea party-affiliated groups that oppose wind-energy development from an economic standpoint. The grass-roots group Whitley County Patriots, which has urged its members to make a stand at plan commission meetings, says wind energy is ineffective and a bad value for taxpayers, echoing an argument being made around the country.

Cutting through the noise has been difficult for planners, said Clinton Knauer, DeKalb County zoning administrator.

DeKalb County last week released a draft of a wind-energy ordinance, even though Knauer said he is not aware of any imminent development in the county. Some residents have mentioned interest in lease options from energy companies, Knauer said, and that was enough for the county to take up the issue rather than wait for a Whitley County-style showdown.

“That’s why we got in front with the public and said we want public input first,” Knauer said.

DeKalb’s draft will be available for public comment through the end of this month, and it incorporates input from two public meetings. Knauer also met privately with local groups with concerns and traveled to a large wind farm to get a better sense of how the turbines look and sound up close.

Some of the meetings got heated, he said, and he was surprised at where the opposition came from – not only tea party-affiliated groups but also some environmentalists.

Most environmental groups, including the Hoosier Environmental Council, have spoken in favor of wind-energy development and said the environmental effects on land and wildlife are negligible.

Some environmentalists, however, contend wind turbines are killers of birds and bats; the U.S. Department of Energy offers research that shows more birds are killed by flying into buildings, cars, high-tension lines or communication towers – even by house cats – than by wind turbines.

Knauer said the hardest thing about crafting DeKalb County’s ordinance has been figuring out what research to rely on.

Not knowing whether research has been influenced by pro- or anti-wind lobbies, and not having historical references for how wind energy could play out in a community like DeKalb County, has made crafting an ordinance to suit DeKalb’s needs a challenge. Knauer said the DeKalb plan calls for board approval for special exceptions of tall structures, which he believes will be a saving grace for anything the ordinance might have missed.

“There’s not a lot of information out there that’s unbiased,” he said. “There’s not a lot of apples-to-apples comparisons.”

To the north, Steuben County, which passed a wind-energy ordinance in 2008, has several small-scale turbines. Building and zoning administrator Frank Charlton, who joined the planning department after the wind-energy ordinance was created, said he bought a $25 permit with the intention of looking into wind energy at his home.

For him, it wasn’t feasible; his calculations showed it would take him 37 years just to break even. But he’s glad the county already has a wind-energy ordinance in place.

“It’s coming,” he said.

Northeast Indiana residents have only to look to the east to see what the future could look like. In 2008, Ohio signed a renewable-energy policy said to be the third-most aggressive in the country, according to the Ohio Department of Development’s Energy Resources Division.

The standard translates into at least 6 gigawatts of wind and solar capacity, enough to power 1.8 million homes, the agency said.

Indiana’s renewable-energy standards, by comparison, have been called passive by some environmental groups, including the Hoosier Environmental Council.

At the end of 2010, Ohio rated a trifling 10 megawatts on the American Wind Energy Association’s wind-capacity map. So far this year, its capacity has grown to 112 megawatts, much of that from a development in Van Wert and Paulding counties in northwest Ohio.

That ongoing project, Blue Creek Wind Farm, calls for 175 turbines, installed by Iberdrola Renewables Inc., the U.S. division of a Spanish company that is the world’s largest wind-power provider.

Iberdrola Renewables said they provide northwest Ohio residents with about $1.1 million in annual lease payments to local landowners.

aturner@jg.net

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