Clean Energy Jobs

Interested in learning more about the primary bill that KySEA supports - the Clean Energy Opportunity Act? View a video podcast of the "Introduction to the Clean Energy Opportunity Act" webinar KySEA hosted on January 19th, 2012 here.

By Adam Barr, member of Community Farm Alliance

http://www.kentucky.com/2012/04/09/2144427/legislature-again-passed-up-chance.html#storylink=cpy

Kentucky's legislature missed a great opportunity in this year's session to help farmers and rural communities.

As both a seventh-generation family farmer and a young farmer in Meade County, I know firsthand that energy has increasingly become an important and costly factor in our operation. We use energy every day on the farm. Energy is the fuel for our tractors and trucks. It is the electricity that runs our irrigators and refrigerators, and it lights our barns and homes. And these days especially, the cost of using energy adds up quickly.

Things are beginning to change. Increasingly, farmers like me see the opportunity to turn energy into an on-farm asset instead of being an off-farm liability.

For instance, on my farm we have used Kentucky Agricultural Development Fund grant money to power our irrigation pumps with solar energy.

Kentucky could do so much more to help farmers and rural communities offset energy costs. We could even turn energy into another farm product.

I, and the other members of Community Farm Alliance, endorsed House Bill 167 and House Bill 187, as a reasonable way to create new jobs in our rural communities and put Kentucky on track for a secure energy future.

HB 167 would have set modest goals for renewable energy use and energy efficiency in Kentucky similar to what 29 other states have already done. It also would have provided market incentives that help farmers like me become energy producers, making my family farm more profitable and Kentucky more energy secure.

HB 187 would have expanded Kentucky's net metering law from its 30-kilowatt limit to increase the ability of businesses, schools, local governments and farmers like me to produce their own power.

Net-metering allows Kentuckians to connect renewable energy systems like biomass, solar, wind or hydroelectric to the electric grid. When a system generates power, some or all of it is used on-site. Any excess flows back to the grid and is credited to the customer's account. Customers do not get paid for producing excess power.

That bill also would have allowed us to partner with investors to produce our own power, something that cash-strapped farmers could really use.

Regrettably, both bills once again received a "for discussion-only" hearing in the House Tourism Development and Energy Committee.

This missed opportunity is upsetting. As my generation looks to the future, too many of our leaders appear to be stuck in the past.

Solar manufacturing jobs come to Edmonson County, KY
Taggart Solar LLC recently announced that it plans to locate a manufacturing plant in Edmonson County. A $440,000 investment, the plant will sustain 30 full-time workers. The Tennessee Valley Authority, which provides electricity to Edmonson and several other Kentucky counties, offers large financial incentives for renewable energy production in it service area. These incentives make it more attractive for solar manufacturing companies to locate there.

Kentucky Center to install Green Roof
The Kentucky Center for the Arts plans to “green” its 76,000 square foot roof quite literally. It will be covered with a special type of soil and sedum plants, which soak up water and provide insulation lowers air- conditioning bills. Center staff hopes to implement a pubic education project along with the new roof. An estimated 500,000 people visit the center each year.

U.S. Department of Defense Spends Big on Clean Energy
The U.S. Department of Defense invested billions in clean energy innovations between 2006 and 2009 – an increase of nearly 200% from pre-2006 spending levels. Projects include major efficiency efforts and large renewable installations at bases. For example, DoD is partnering with Nolin Rural Electric Cooperative to make efficiency improvements and install solar and geo-thermal systems at the Fort Knox base.  (Department of Defense Accelerates Clean Energy Innovation to Save Lives, Money, Pew Study 2011.)

by Lisa Abbott

Legislators heard testimony today about the benefits of the Clean Energy Opportunity Act (HB 167) during a hearing before the House Tourism Development and Energy Committee. KFTC members and our allies in the Kentucky Sustainable Energy Alliance have made HB 167 a high priority, and many were on hand in the packed committee room to show support. Although no vote was taken, the hearing was an important opportunity to inform legislators and build support for the future.

Bill sponsor Rep. Mary Lou Marzian introduced the bill, noting, "Thank you for allowing us to bring this important issue for discussion. This is a piece of legislation about job creation in Kentucky. Twenty-nine other states have passed this kind of policy that is called a renewable and efficiency portfolio standard. These policies have been shown to stabilize rates and create jobs. And those would be jobs that could stay in Kentucky."

Rick Hornby of Synapse Energy Economics presented a summary of a report his firm recently did about the potential economic impact of HB 167 on jobs and electricity rates in Kentucky over the next 10 years. "Kentucky is facing an electricity challenge. A number of utilities are looking at retrofitting some coal-fired plants. Some are planning to retire coal plants. Some of those retirements will be replaced with new generation, largely natural gas. Our study projects that Kentucky is looking at increases in average electricity supply costs on the order of 50%. Adding renewable energy and energy efficiency to your mix will help Kentucky turn this challenge into an opportunity. As I say, it will help. There is no silver bullet."

Hornby touched on several highlights of the Synapse report, including:

• The energy efficiency and renewable energy requirements contained in HB 167 could generate 28,000 net new jobs over the next 10 years.

• Under any scenario – whether this bill passes or it doesn't – utility rates in Kentucky are going to go up significantly.

• Average electric bills in Kentucky are projected to be 8-10% lower at the end of 10 years as a result of HB 167 than they would be under a business-as-usual scenario.

Chris Woolery, who works with the Mountain Association for Community Economic Development (MACED), also testified in support of the measure. "I'm one of those contractors that could definitely have benefited from legislation like this. As a former Energy Star home-builder, I learned about the importance of energy efficiency. Then when the market crashed I went into energy retrofit work."
Woolery described his job doing home energy audits and retrofits in eastern Kentucky. "I'm now working with How$mart Kentucky. We work with four rural electric co-operatives in eastern Kentucky to do on-bill financing for energy improvements. With these co-ops we do whole house audits and energy upgrades, and we create a savings that the customer uses to pay for the improvements."
Woolery described some of the results of the How$mart program in the past year:

• reached customers in 23 counties.

• retrofitted 57 houses.

• saving people 25-37% on their bills.

• savings of $550 per year on average per family.
• Over 40% of the families the program has worked with are low to moderate income.

David Brown Kinloch, a renewable energy developer in Kentucky, also spoke before the committee. He emphasized the importance of a portion of the bill – called a feed-in tariff – that is designed to spur  investment in renewable energy projects. "A feed-in tariff will allow companies like mine to finance projects and sell power into the grid here in Kentucky. There is tremendous opportunity in Kentucky, and this bill just allows that opportunity to be harvested."

The testimony generated a number of comments and questions from members of the Tourism Development and Energy Committee. Chairwoman Leslie Combs from Pike County voiced concern about the troubling projections that utility rates are projected to rise steeply under any scenario.

"Consumers are consistently concerned about the fact that their rates are going up, today," she stated. "They don't want their rates to go up any more, and if anything they would like them to come down. But according to this chart, under any scenario, the rates go up. Period. I realize that's kind of the way things are, but at the same time it's hard to explain to the consumers who are saying, 'stop raising our rates.'
Hornby acknowledged that difficult reality. "I very much understand. It would be nice to be able to come in and say that. But the numbers are the numbers. Kentucky has a big challenge. Over the next several years, no matter what, your rates are going to go up by some amount. 

What efficiency and renewables can do is give your ratepayers some ability to respond to those increases. If you use less, your bill won't go up as much even as rates rise, and we are going to help you use less."
Rep. Keith Hall from Pike County concluded the testimony on HB 167 with a note of praise. "I want to commend Rep. Marzian for bringing this measure before the committee. And to the gentleman who spoke about energy efficiency, that's a very good program. This has been a very worthwhile conversation, and I want to commend the Madam Chairperson for having it."

A public affairs program on WMMT-FM, a community radio station based in Whitesburg, focused last week on the benefits of clean energy policies that are currently under consideration in the Kentucky General Assembly.

You can listen to the program here.

The talk show features Nathan Hall, a resident and biodiesel entrepreneur in Floyd County, and Matt Partymiller, operator of a solar energy firm based in central Kentucky. The two described ways that stronger state energy policies can create jobs across the state and help families, farms and businesses save money by saving energy.

Thanks to WMMT-FM, Nathan and Matt, and others who called into the program with questions and information.

More than 60 citizen lobbyists came to Frankfort on Tuesday, February 28, to talk to legislators about the promise of clean energy.

The Clean Energy Lobby Day was hosted by the Kentucky Sustainable Energy Alliance (KySEA), a coalition of 52 organizations working to pass clean energy policy that would stem rising energy rates and create thousands of new jobs.  KySEA includes small businesses, faith communities, housing groups, MACED, environmental groups, and even individuals.

It was an incredible day.  Participants from around the state met with more than 50 different legislators to discuss House Bill 167, the Clean Energy Opportunity Act.  Sponsored by Rep. Mary Lou Marzian, the bill would establish benchmarks for increasing the use of renewable energy and energy efficiency in Kentucky over the next ten years.  It would also establish payment rates for renewable energy to encourage renewable energy industries to locate in Kentucky and create new jobs.

Many surrounding states have already passed such measures, and new jobs in clean energy are going to Ohio and North Carolina instead of Kentucky.

EKU students John Bowers and Emily Justus, and Nick Johnson, a U of Louisville student lobbied for the first time.  Nick told his senator, Robert Leeper of Paducah, about the Synapse Economics study which projects 28,000 additional job-years in Kentucky by 2022 if the bill is passed.  When he came out of the meeting, Nick said “I think I know how to do public speaking.  And now I’m going to learn how to be better at lobbying legislators.”

Emily Justus, a native of Pike County, said she came to Frankfort to “show our support and learn about the whole process.”  John Bowers of Berea said, “I’m very much for clean energy. I think that’s the wave of the future and the direction we need to go.”

Each legislator who met with KySEA representatives was given a packet of information about HB 167 and its projected benefits.  Most KySEA participants reported a fairly favorable response from their legislators.

The Clean Energy Opportunity Act is assigned to the House Tourism, Development and Energy Committee.  One strategy of the lobby day was to press for the bill to get a hearing, and we have learned that our efforts were successful on that. The bill will get a hearing in committee in the next few weeks!  

So, we ask all the wonderful KySEA activists to stay tuned, and come back to the Capitol complex to attend the hearing.

Kentuckians are ready to reap the benefits of clean energy. Energy efficiency and renewable energy solutions are already working in Kentucky to reduce energy costs, create jobs and improve our health and well-being. But new policies are needed before we can realize the full benefits of this transition.. We can’t afford for Kentucky’s workers, families and businesses to be left behind as other states ramp up their investments in one of the fastest growing sectors of our national economy.

Your voice is needed to urge Kentucky’s General Assembly to pass HB 167, the Clean Energy Opportunity Act. 

HB 167, sponsored by Rep. Mary Lou Marzian, asks utilities in Kentucky to gradually increase the share of their electricity mix that comes from renewables and energy efficiency. A recent study projects that over the next ten years this could create 28,000 net new jobs and result in lower average bills, compared to the “do nothing” scenario. 

Here are two ways you can help support this important legislation:

1) Call the toll-free message line (1-800-372-7181) and leave a message for your state Senator and state Representative. A suggested message is: It’s time to invest in clean energy solutions that can put Kentuckians to work and curb energy costs for families, farms and businesses. Please support HB 167.”

2) Come to Frankfort on Tuesday, February 28 to participate in a lobby day sponsored by the Kentucky Sustainable Energy Alliance. You don’t have to be an expert. We’ll provide materials and a quick orientation in Room 113 of the Capitol Annex starting at 9 a.m. Then you’ll set out in small groups to talk with legislators about the benefits of HB 167 and clean energy solutions. Please let us know if you plan to attend by registering here - https://docs.google.com/a/kftc.org/spreadsheet/viewform?formkey=dHVFd2xkSTJfY2h2cUZSb1JRZHVPemc6MQ#gid=0 

More Information:

More information about HB 167 and the Kentucky Sustainable Energy Alliance can be found at www.kysea.org

A factsheet about HB 167 can be found here: http://www.kysea.org/legislative-policy-work

A recent article by Matt Partymiller, operating manager of Solar Energy Solutions, can be found here: http://www.kentucky.com/2012/02/14/2067838/ky-voices-encourage-power-companies.html#storylink=misearch

A copy and executive summary of the recent study about the jobs potential of HB 167 can be found here: http://www.maced.org/REPS-release.htm

A new study estimates that in 10 years Kentucky could create over 28,000 jobs while lessening the growth of electricity bills by passing clean energy legislation currently in front of the General Assembly. Synapse Energy Economics produced the study, which is an analysis of the Clean Energy Opportunity Act (HB 167) introduced by Representative Mary Lou Marzian.

 “This study confirms that legislation to diversify our electricity portfolio would be economically beneficial to Kentucky,” said Justin Maxson, President of the Mountain Association for Community Economic Development (MACED). “The bill would allow the state to hedge against increasing rates by making homes and businesses more energy efficient. And it would spur the creation of clean energy jobs installing renewable energy projects and making energy efficiency upgrades.”

“The era of cheap energy is coming to an end,” said Maxson, “and it is really a question of whether we in Kentucky take advantage of the opportunities that exist in the clean energy economy of the future.”

Synapse’s study is a high level analysis of the proposed legislation’s impacts on Kentucky’s electricity bills, jobs, and economy. The study concludes that making small but significant steps to begin diversifying Kentucky’s portfolio over the next ten years will lower the bills of Kentucky’s residents, business owners, and industrial facilities compared to their bills without a clean energy standard.

Synapse projects that, under the REPS, average annual electricity bills could be eight percent to 10 percent lower than under a do nothing scenario. In addition to saving Kentuckians money, the REPS would lead to over 28,000 net new jobs over and above any jobs lost in fossil fuels and add $1.5 billion to gross state product once fully implemented in 2022.

 “Efficiency and renewables are already the emerging trend in construction in the Commonwealth,” said Kentucky solar entrepreneur Matt Partymiller of Solar Energy Solutions in Lexington. “This report by Synapse captures what Kentucky engineers and contractors already know and what other states have already seen. Legislation like the Clean Energy Opportunity Act will provide the tools necessary for Kentucky builders to create jobs while ensuring Kentucky energy costs stay low.”

The study’s findings are supported by what neighboring states that have passed similar legislation have experienced. North Carolina has seen tremendous growth in the number of clean energy firms operating in their state since passing an REPS in 2007. Ohio built on the strengths of its traditional manufacturing sector to start building clean energy equipment in state, and reap real economic benefits from their 2008 law.

Synapse carried out the study for the Mountain Association for Community Economic Development, a Berea based economic development organization, and the Kentucky Sustainable Energy Alliance, a coalition of over 50 businesses, affordable housing advocates, non-profit organizations and faith based groups. MACED and KySEA wanted to understand the economic impacts of an REPS in Kentucky, and a comprehensive analysis of a bill like the Clean Energy Opportunity Act has not been part of the policy conversation until now.

The report can be accessed at www.maced.org/files/Potential_Impacts_of_REPS_in_KY.pdf

Kentucky falls in national energy efficiency ranking
The American Council for an Energy Efficient Economy (ACEEE) recently ranked 37th out of all states on its annual state energy efficiency scorecard. This represents a step down from previous years’ rankings. In 2010, Kentucky was 36th and in 2009 it was 33rd. The rankings are based on an array of metrics including state levels of funding towards energy efficiency and best practices in state energy efficiency policy and program implementation.

Fort Knox Army Base partners with EKPC’s Nolin Rural Electric Co-op to Install Clean Energy Systems
Over the last two years, Fort Knox has partnered with the co-op to create a plan to reduce energy use 35% by this year. The plan included energy efficiency upgrades, a major solar installation, and a geo-thermal heating and cooling system placed in the base barracks. Annual savings from the energy plan is estimated to be $2.8 million. Source: U.S. Department of Energy, Energy Efficiency & Renewable Energy

Industrial Efficiency Efforts in Richmond, KY Saves Money For Sherwin Williams Plant
Sherwin-Williams is the largest producer of paint in the United States today.  The company owns over 3,000 stores throughout North America, with one of its largest plants located in Richmond, KY.  The Kentucky-based Sherwin Williams plant is doing something unique – it’s leading the way on industrial efficiency.

In 2008, via a partnership with the Division of Energy’s Industrial Technology Program, Sherwin William began the process of launching an energy reduction program.  By the 2010 the plant had reduced its total energy consumption by over 25% - with the potential to reduce energy intensity to 50% as more improvements are brought online.  Source: Personal interview by Lauren McGrath of Sierra Club with plant engineer

Energy Improvements Can Save Money and Create Jobs in Cincinnati Area, Study finds
Energy efficiency upgrades to the area's homes and non-profit buildings can save area residents $60 million in lower energy bills and create more than 300 local jobs, according to a study released last month by the Greater Cincinnati Energy Alliance. The study looked at the economic impact of energy efficiency investments to the metropolitan area, which includes the Kentucky counties of Boone, Campbell, and Kenton.

The interim joint committee on local government will host a "discussion on solar energy" tomorrow, October 26th, in Frankfort at 10 am in the Capitol Annex room 171.

Join us to support Matt Partymiller and Denis Oudard of Solar Energy Solutions and the Kentucky Solar Energy Society, both member groups of KySEA.

The committee is co-chaired by Senator Damon Thayer and Representative Steve Riggs. Both are interested to learn about the opportunity Kentucky has to advance solar energy and how local governments can take action.

By Denis Oudard, representative to KySEA for the Kentucky Solar Energy Society
Posted: http://www.kentucky.com/2011/10/16/1923111/capitalism-will-drive-demand-for.html#ixzz1bAIpmegN

Solar electricity will be cheaper than any other source of electricity by 2020.

There, you heard it from me first. This claim is now more believable than ever.

Signs are everywhere that this will be reality within our lifetime. The reason is very simple, and it has nothing to do with the Environmental Protection Agency or environmentalists. It has to do with good old capitalism.

First, some basic, but important, data.

You can go crazy trying to determine the cost of electricity from coal (try the Internet), but since I have seen some utility bills from large companies at about 3.3 cents per kilowatt hour, it is quite safe to assume that — under most circumstances — it is less than 3 cents, including the transmission to the point of consumption.

More importantly, it is safe to assume that it is not going down. Kentucky residential customers pay about 8 cents per kWh and they know it has not been going down.

Today the solar industry can install utility-size systems that over their 40-year lifetime will produce electricity at a cost of 10 cents per kWh, down from about 18 per kWh about a year ago.
The reasons for this sudden decline are several, but the two main factors are:

■ European countries have lowered their feed-in-tariffs, the amount of money European utilities promise to pay for solar electricity, making them less attractive to investors

■ China is investing huge amounts of money in solar production plants. This has created an oversupply situation in the photovoltaic industry, sending the price of PV modules tumbling.

The cost of solar was going down before these two recent events and it will continue going down, most likely in fits and starts. Eventually, it will halve again, and again and again. I predict that by 2020, the cost of a solar kWh will be 2.2 cents, delivered.

Many in the industry make similar predictions. Forward thinking companies and governments all over the world are spending hundreds of millions of dollars to install solar systems. Once the cost of solar electricity reaches "grid-parity," the point where solar electricity is cheaper than the alternatives, they will spend hundreds of billions of dollars.

Solar has all kind of neat advantages. It produces electricity without water, without ashes and without various unwanted gases and poisons. But as we have seen, for many people those advantages are not enough. The decisive advantage of solar is that its cost is going down.

The implications are far reaching. Countries and states that do not act now to build a solar energy infrastructure, including knowledgeable engineers, qualified installers, modern transmission lines and even electricity storage, will find themselves with the highest electrical bills in less than 10 years.

Some say that coal is already the expensive solution today because of its externalities: its pollutions of all kind and their consequences. What seems to be the source of cheap electricity today will no longer be the source of cheap electricity tomorrow, no matter how you do the math and no matter how you account for externalities.

Some people say we cannot afford to rely on more expensive renewable energy. Their message — that renewable energy is pushing the price of electricity up — is the exact opposite of what is going to happen. Sticking with the status quo is what is going to cause the cost of electricity to increase the most. Investing now in renewable energy will create the cheapest electricity in the near term.

Groups involved with the Kentucky Sustainable Energy Alliance (KySEA) and the Kentucky Solar Energy Society (KySES) are finally making some progress in Frankfort waking up our legislators to this reality. They are advocating a bill that would progressively increase the portion of clean energy that utilities purchase and implement policies — which states including Ohio, North Carolina and New Jersey have already adopted — to grow Kentucky's clean-energy market, clean-energy expertise and clean-energy jobs.

 

Last Monday and Tuesday, September 26th and 27th, nearly 20 representatives of KySEA member groups attended the Governor's Conference on Energy and the Environment.

Member groups in attendance included: Kentucky Solar Energy Society, Solar Energy Solutions, Alternative Energies Kentucky, Center for Sustainable Cities Design Studio, Phinx LLC, Sierra Club, Wellhead Energy Systems and Kentuckians For The Commonwealth.

KySEA representatives also staffed a table promoting the benefits of clean energy in the Commonwealth and the Clean Energy Opportunity Act during the two days.

The KySEA table entertained quite a bit of traffic, having conversations with conference participants about topics ranging from green energy on schools to clean energy training opportunities to in-depth discussions about the Clean Energy Opportunity Act. Several KySEA member group representatives also took the time to get to know one another.

KySEA representatives attended the wide variety of conference sessions that were offered. The conference did advance the discussion about clean energy solutions compared to last year in that break-out sessions about distributed energy options in Kentucky, the Kentucky Home Performance efficiency program and the statewide Kentucky Recycling organization were offered.

Further, former Governor Bill Ritter of Colorado was invited to speak on a plenary session about the advances his state saw in job creation and renewable energy production during his tenure. He credited the success to the implementation of statewide energy policies that encouraged such growth.

Many speakers, including Energy Secretary Len Peters and Kentucky Chamber of Commerce President Dave Adkisson, indicated that the most promising policy advancement potential in Kentucky, in their minds, is energy efficiency.

"There's a quiet revolution going on in conservation," Adkisson said.

The Clean Energy Opportunity Act, supported by KySEA, would increase the amount of energy that utilities offset through energy efficiency programs every year.

To learn more about the conference or to view the presentations from the conference, please check this page of the state's website soon.

Re-posted from the Associated Press

A solar energy farm that is expected to produce enough electricity to power 1,200 homes will be built at Indianapolis International Airport.

The Indianapolis Star reports that the project will cost an estimated $35 million to $45 million to build. The array is expected to be operational by the middle of 2012. Its power will be bought by Indianapolis Power and Light Co.

The Star reports the 41,000-panel solar array will be built by a partnership of 3 Indianapolis companies.

The Star said about 85 construction jobs are expected to be created and that the long-term operation of the array is expected to create about 18 positions.

Airport officials said Tuesday that no public money is involved in development of the solar farm.

 A recent report on green jobs in Kentucky indicates that green employment in the state is expected to grow at a more rapid pace than the workforce as a whole, with anticipated growth of 6.8% over the next two years.

Excerpts from the executive summary:
 
"The survey indicates that approximately 4.6% of Kentucky’s workforce are performing green jobs. A majority (78%) of the green jobs in Kentucky are full time positions while approximately 9.4% of the organizations in Kentucky include green jobs of some type.

The majority of green jobs in Kentucky are in the Recycling and Waste Reduction core category, followed by Energy Efficiency, then Pollution Reduction and Cleanup. However, the Energy Efficiency and Recycling and Waste Reduction categories appear positioned for the most employment growth in the green core areas in the next two years. 

While the state’s green workforce is poised for growth, approximately 9% of employers anticipate difficulty in finding qualified candidates to fill positions in the Energy Efficiency, while an estimated 6% are anticipating similar challenges in finding qualified candidates... [in other green work areas.]

Certifications can have an impact on an employer’s interest in hiring candidates for green jobs. In making hiring decisions over the next two years, 15% of employers indicated a favorable response to hiring a job candidate with a certification in Leadership in Energy and Environmental Design (LEED), and 10% of employers cited Build-It Green Certification as increasing the likelihood that they would hire a candidate. On the other hand, a modest 7% of employers stated that they would only hire “already trained” employees for green positions.

The dominant modes of preparing green employees include, in order of employer preference, on-the-job training (79%), in-house classroom (39%), and online training (30%)."

The report was authored by ICF International and the Kentucky Office of Employment and Training.

By Andy McDonald, Director, Kentucky Solar Partnership (A KySEA member)

In August the Kentucky Solar Partnership hosted four days of trainings in Frankfort on solar photovoltaic system design and installation. Thirty two participants attended the first two-day class, “Introduction to Solar Photovoltaics.” Eighteen participants stayed for day three, “Solar Site Assessments and PV System Design,” and fourteen people attended the final day, “PV and the National Electric Code.” The classes were taught by Chris LaForge of Great Northern Solar, a NABCEP-certified solar PV installer and an ISPQ-certified PV instructor.

Instructor Chris LaForge with students outside KSP's Solar Trailer

Our participants included electrical contractors, solar electric contractors, recent college graduates, engineers, and others exploring solar energy as a potential career path. Two students from the University of Louisville will use the knowledge they gained as they help design U of L’s entry in the international Solar Decathalon solar home design competition. Four participants will receive Continuing Education Units from the Kentucky Office of Housing, Buildings and Construction to support their electrician’s licenses.

Our participants came from a wide geographic area, ranging from Paducah to Prestonsburg to the Cincinnati Metro area. One person came all the way from Missouri and another from Evansville, Indiana.

Andy McDonald discusses his home's solar PV installation

On the second day of the training the class made a field trip to my home to view my recently-installed grid-tied solar PV system. This five panel, 1.125 KW array is a ground-mounted, battery-free system that was sized to meet 100% of my family’s annual electricity needs. Participants also had a chance to view KSP’s Solar Trailer, which demonstrates an off-grid, battery-based PV system. The chance to view operational PV systems in real-world applications was a highlight of the trainings for many participants.

Chris LaForge explains how to use a solar pathfinder

Nine of our participants were able to attend thanks to financial support offered by MACED (the Mountain Association for Community Economic Development). MACED supports the development of small businesses in eastern Kentucky and has a special emphasis on supporting sustainable energy enterprises. In addition to financial assistance to attend ASPI’s workshops, MACED also offers financing for business development investments, “energy microloans” for energy efficiency and renewable energy investments for eastern Kentucky businesses, and technical assistance to building trade contractors. MACED also has a Certified Energy Manager on-staff to provide energy consulting.

Coming up in October KSP will be hosting a five-day, hands-on installation training. Many of our participants from August will be returning to gain hands-on skills as we install an off-grid solar electric system on a mobile trailer. Registration for the October workshop is already full.

To learn more about MACED’s Energy Efficient Enterprises project, contact Elizabeth Graves at 859-986-2373 or egraves@maced.org.

By Dan Hofmann, RegenEn Solar (A KySEA member)

(Editor’s note: In the last two weeks, three large American solar panel manufacturers including Evergreen Solar and Solyndra have sought bankruptcy protection due to increasing competition from China and plummeting solar panel prices. There’s been a 70-percent decrease in solar panel prices over the last 24-month, according to industry sources.)

Global competition and Europe’s budget woes are having an unexpected effect on the residential solar-energy business, a trend that’s bad for U.S-based manufacturers, but great for consumers.

The price of solar panels has dropped so dramatically during the first six months of  2011 that now, for the first time, solar  is competitive in pricing coal-fired electricity from LG&E.
The way panel prices are falling, even without the federal tax credits that expire in 2016, solar has reached parity with coal-fired plants.

This is a big deal.

Many – if not most – contractors in the industry can install a solar panel system for 8 cents per kilowatt-hour (after tax credits), the same rate that LG&E residential customers currently pay.

And LG&E rates are set to increase by 19.2 percent during the next five years while solar customers would be locked in at 8 cents per kilowatt-hour for 25 years.

The drop in solar panel prices is due to an unexpected reduction in government incentives throughout Europe that caused an oversupply for solar manufacturers worldwide.

Increased production from heavily subsidized Chinese manufacturers that can crank out solar panels at extremely low prices also contributes to the price drop.

As these solar panels prices fall, the U.S. industry is passing those savings directly to the homeowner.

There are economies of scale with solar, so the price per kilowatt-hour can range from 10 cents to 7 cents depending on the amount of kilowatt-hour usage per year. Some homeowners we talk to use 7,000 kilowatts per year while some people with large houses use 50,000 kilowatts per year,

The average LG&E residential customer uses about 11,500 kilowatts per year. This also applies to large commercial facilities where we can match the cost per kilowatt rate of around 3 cents.

The arithmetic behind the cost per kilowatt for solar is the amount of electricity the solar panels are guaranteed to produce while under warranty.

The industry standard is 25 years on the solar panels and, more recently, some inverters.

So, you take the upfront installation cost (after tax credits) and divide that by the total kilowatt-hour production over 25 years.
Another benefit is that solar panels can produce electricity for 40 or 50 years, so the actual cost per kilowatt-hour could end up being much less.

It will be interesting to see how the panel price war plays out, and whether consumers will proceed with long-planned solar projects, or hang back to see how low prices go.

Homeowners could buy a system now that pays for itself in 10 years, or wait five years for a system that pays for itself over five years – the ROI time horizon would be the same.

The take away here is, we now have an endless clean energy source that costs the same as fossil fuel energy.

Last week, a coalition of 24 governors from both major parties and each region of the country, including Kentucky Governor Steve Beshear, asked the administration to take a series of steps to provide a more favorable business climate for the development of wind energy.

Read the full text of the letter here. Excerpts below:

“Although tax credits for wind energy have long enjoyed bipartisan support, they are scheduled to expire next year. Wind-related manufacturing will slow if the credits are not extended, and some of the tax credits’ benefit will be lost if Congress pursues a last-minute extension. It is important to have consistency in policy to support the continued development of wind manufacturing in the United States. Extending the production tax credit and the investment tax credit, without a gap, is critical to the health of wind manufacturing in our nation. The wind manufacturing industry in the U.S. would benefit even greater if the extension of these credits would be for at least seven years."

The governors’ letter also calls for:

    •    Establishing a combined intergovernmental state-federal task force on wind energy development to “ensure the Administration’s wind energy goals are met.”
    •    Expanding the Department of Energy’s renewable energy programs to “focus not only on technology research and innovation, but also on technology deployment and market development,” noting that, “these are precisely the types of efforts other nations are utilizing to successfully compete with the United States. We must recognize that a scientific breakthrough five or 10 years from now, plus several more years for commercial acceptance, will be of little value if our wind industry has been relegated to minor players in the global marketplace.”
    •    Improved collaboration on siting new wind turbines: “… [W]e believe wind energy and wildlife protection are entirely compatible and we urge a prompt resolution of the Wind Energy Guidelines and Eagle Guidance concerns.”
    •    Expediting deployment of offshore wind: “A new U.S. offshore wind sector would create tens of thousands of jobs in businesses ranging from R&D and engineering to manufacturing and marine construction.”
    •    Identifying transmission and grid integration priorities for Power Marketing Administrations (PMAs) such as the Bonneville Power Administration

The 24 governors’ letter concluded, “We believe these actions will help address some of the national economic and energy challenges before our nation. We look forward to working with you and your Administration to further our nation’s wind energy development to help drive economic growth, energy development, and the creation of high-paying jobs.”

Read more about wind potential in Kentucky here.