Independent Solar

Keep Labor Day Local

SeanBarr — Sat, 01 Sep 2012 15:55:09 +0000

On September 5, 1882, the first Labor Day was celebrated in New York City in accordance with the Central Labor Union. Labor Day gives us an opportunity to recognize great efforts and accomplishments of the American Worker, past and present. Similarly, it provides an opportunity for the American Consumer to reflect.

With politicians talking about free markets and the size of government, we as Americans look forward to exercising our freedom in the form of voting this November. But in reality we vote for how we want our town, state, country, and planet to operate every time we buy something. With economics driving so much of our politics, one could easily argue that our purchasing decisions have more of an impact than any ballots cast in November.

As an economy built on the back of workers has grown, matured, evolved, and globalized, the relationship between workers and consumers has become more complicated. The best way for us as consumers to celebrate, support, and empower the American Worker is to buy local.

Arguments can be made that non-local provides us with economies of scale, allowing corporations to operate more efficiently thus driving down costs and ultimately providing a better value for the American Consumer. But this is based on the falacy that we are getting the exact same product. When we provide money for a product we are buying it for a particular function, but that money is actually paying for what it took to get that product to produce its intended function. Admittedly chasing down a product’s lineage is a hassle that most consumers avoid, instead making decisions based solely on the product’s function and it’s cost in dollars. However, there are simple ways to ensure our purchases support the American Worker, and the simplest is to buy local.

A few of the benefits of buying local:

1) Keeps money in our cities and states

2) Provides accountability for the product

3) Empowers workers, as opposed to large corporations with layers of management and investors

4) Makes it easier to understand the product’s lineage

5) Enables us to get better service

6) Supports community culture

7) Reduces environmental impact of transporting goods

8) Encourages small business

So 130 years later, as we continue to celebrate a holiday dedicated to the American Worker, show your support. Take walk down the nearest Main Street and look for unique gifts for upcoming birthdays and the holiday season. Go hit the farmstand for flowers and fresh vegetables. Pickup take out from your favorite non-chain restaurant. And get a growler from your local microbrew to celebrate all the hard work you just supported!

Solar is Good.

SeanBarr — Tue, 21 Aug 2012 23:23:29 +0000

Spending so much of my time in the weeds of lease contracts, tax incentives, market trends, RPS, SRECs, financial metrics, etc, I thought it would be good to take a step back, and simply remember why solar is good.

1) Environment: A kwh (kilowatt hour) that is produced from a solar panel, is a kwh that is not produced from another energy source. In 2011, 87% of the electricity in the US was generated in a fossil fuel or nuclear power plant. Solar panels do not require fuel that needs to be mined from underground, do not emit pollutants into the air, water, or ground, and do not produce radioactive byproducts. If you like the environment, solar is good.

2) Empowerment: Solar power is unique in that it can be scaled to service the smallest of electricity users (think about your old solar calculator). By giving homeowners, business owners, governments, and other electricity consumers ownership of their electricity supply, solar reduces the risks associated with reliance on some other entity for electricity. Solar enables empowerment, and assuming we agree that empowerment is a good thing, then solar is good.

3) National security: Books could be written on this topic (hmmm…). Solar is critical to national security in the most direct form of being used at remote bases, but also adds to our national security at home. Distributed electricity generation provides for a more robust power grid. Economic growth due to solar bolsters our international strength. Energy produced with solar is also energy we do not have to purchase internationally, whether from friend or foe. And if you don’t believe me, perhaps General Wesley Clark (ret.) can convince you in his 4th of July Forbes editorial. If you like America, solar is good.

4) Economy: Manufacturing solar panels creates jobs. Selling solar panels creates jobs. Installing solar panels creates jobs. Maintaining solar panels creates jobs. Investing in solar electricity creates new financial instruments that are actually backed by tangible assets (talk about old school!). Solar is now lower cost than traditional (read: fossil fuel) energy sources when compared over the life of the installed system. Solar creates efficiencies in our national economy by reducing the cost of energy. If you believe in free markets and capitalism, solar is good.

5) Technology: Since the Industrial Revolution, this country has thrived by developing new technologies. In an ever increasingly global environment, solar provides an opportunity to once again position ourselves as global technology leader in one of the fastest growing industries in the world. If you are a fan of advancements and continuing our position as a global technology leader, solar is good.

Yes, sometimes it really is that simple.

Sick of Government Subsidies? Go Solar!

SeanBarr — Wed, 01 Aug 2012 23:11:03 +0000

Countless times I have been approached by folks who think solar is a great idea in theory, but they state it does not make sense (at least not yet) because the industry relies too heavily on government subsidies. Some typical comments I hear:

“Solar cannot compete with traditional energy sources without government handouts.”

“I don’t believe the government should be picking winners.”

“The market should determine our energy sources, not the government.”

“I don’t trust the financial returns solar promises, because they are based on government credits.”

…and the list goes on.

Unfortunately, similar to so many national debates, the conversation around solar is all too often driven by politics as opposed to facts. One person’s path to energy security and cleaner air is another person’s government sponsored boondoggle. Everyone is entitled to opinions, but the facts that shape those opinions are not up for debate.

FACT: Solar does receive government subsidies.

FACT: If you are connected to the electric grid, you consume government subsidized energy.

FACT: Solar subsidies are a blip on the radar when compared to our nation’s primary energy fuel sources (coal, gas, oil, nuclear, and hydro).

Not surprisingly, the amount of taxpayer money spent on subsidizing both young and mature energy industries is not advertised by our government. However, numerous research papers, studies, and articles on the topic continuously rate our primary fuel supplies in the following order, beginning with the most heavily subsidized:

1) Oil and gas. 2) Coal. 3) Nuclear. 4) Ethanol. 5) Renewables (heavily led by wind, with solar, biomass, and geothermal lagging behind).

The Christian Science Monitor cites average annual oil and gas subsidies of $41B, compared to $6B for all renewables combined. Forbes (another source not known for aligning itself with the solar community) states that solar energy subsidies made up just 3% of all direct government energy subsidies in 2010. And if you have a bit deeper attention span and interest in the topic, DBL Investors (venture capital firm) teamed up with Yale in 2010 to develop a 38 page study titled “What Would Jefferson Do? The Historical Role of Federal Subsidies in Shaping America’s Energy Future”. The study points not only to recent subsidy trends, but also illustrates how when you look back over the past 100 years, subsidies to traditional energy fuels flat out dwarf those given to renewables. Amazingly, the study is not able to put a dollar amount on historical coal subsidies due to the incalculable amount of government involvement in propping up infrastructure to support the industry, and a lack of 19th century data on the amount of government funds spent on the industry.

Bottom line: if you are looking for the least subsidized form of energy in the U.S., solar is presently the most practical choice.

(pictures and charts courtesy of http://endfossilfuelsubsidies.org/blog-2/, DBL Investors, and http://cen.acs.org/articles/89/i51/Long-History-US-Energy-Subsidies.html, respectively)

What’s in it for the leasing company?

SeanBarr — Mon, 23 Jul 2012 01:43:42 +0000

Image courtesy of SolarChargedDriving.com

One of the most common questions I get when talking to homeowners about solar leases is “What’s in it for you?”

Technically, what’s in it for us (Independent Solar) is the same whether someone purchases or leases a system. As an integrator/installer, we get paid the same amount to do the install whether it is a purchase or lease. The only difference is who pays us: the homeowner or the leasing company. So we don’t really care whether someone purchases or leases a system, though we do pride ourselves on guiding homeowners towards the best solution for their needs.

What the homeowner is trying to ask though is “What’s in it for the leasing company?” Answer:

1) A monthly payment from the homeowner for (typically) 20 years. Or, in the case of prepay leases, a lump sum payment up front.

2) Ownership of state and local incentives, most notably SRECs or rebates. In New Jersey, this would be the SRECs. Many leases now have an option for homeowners to own the SRECs.

3) A 30% federal tax credit.

4) Tax writeoffs for the capital investment of the system under an accelerated depreciation schedule. It should be noted that this is the only incentive listed here not available to homeowners if they buy the system.

The leasing company (NRG, SunRun, Sungevity, Clean Power Finance, among others) undoubtedly makes money in the deal. But that’s what banks and other institutions that offer financing do, and in the process open up markets to new participants. According to SunRun, 73% of homeowners choosing to go solar in California are now doing so through leases, and New Jersey is rapidly catching up. More people can have solar installed due to leases, which due to the environmental benefits inherent to solar is by definition a positive for all of us. So even if solar leasing is not for you, you should be glad that it might be good for your neighbor.