Renewable Energy Markets Face a Bevy of Surmountable Challenges

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user Lucas Braun

As I write this, the first day of the World Renewable Energy Forum is coming to a close and my mind is swimming with a plethora of information on the status of renewable energy (RE). One thing has been already made clear – clean techies around the world still have much work to do to ensure RE markets continue to thrive. If we would like to see more renewables adopted on a utility-scale or on the distributed generation level, then we as renewable energy (RE) professionals need to focus on changing perceptions and making RE financially feasible through policy and the free market. Highlights from some of the Ignite presentations are as follows:

• Dr. Ken Swift, An End User Perspective on the Cost of Solar PV Installed by Commercial Organizations: Mr. Swift studied whether it made economic sense to do solar PV in commercial settings in four cities across the U.S. Some of the factors impacting return on investment (ROI) for commercial PV include levels of solar radiation, electricity costs, and state or utility RE incentives. Bottom line on cost effectiveness? Location, location, location.
• Dr. Varun Rai, Decision-Making and Behavior Change in Residential Adopters of PV: Dr. Rai completed a survey of 365 PV owners in Texas to find out the reasons why they chose to adopt PV. Environmental impact and financial attractiveness are the biggest reasons for adopting PV. However, Dr. Rai found that solar adopters had “information overload” with respect to residential PV. This information overload was mitigated when prospective PV buyers spoke with other PV owners. In addition, people are more likely to adopt PV when there is at least one PV owner in their own neighborhood that they can talk to. Also, one interesting aspect of the study was that solar PV adopters are more sensitive to energy conservation. Bottom line? Get existing PV owners to talk to their neighbors.
• Kristen Brown, Incorporating Climate and Air Quality Externalities in the U.S. Electric System: Ms. Brown studied what would happen if there were fees placed on “externalities” like the damages that electricity generation provides through greenhouse gas (GHG) pollutants. Ms. Brown’s study found that fees would cause changes in the electricity mix by decreasing the amount of fossil fuels and increasing solar and wind generation. When we begin to consider the damages that electricity causes it begins to affect our electricity decisions. Bottom line? If we put a cost on electricity damages, it makes clean technologies more attractive.
• Sean Ong, PV Grid Parity in the U.S.: Mr. Ong mentioned that surveys have shown that 90% of Americans want solar PV, but the prices are too high at this moment. Once PV prices come down and are competitive with traditional utility fuels, also known as “grid-parity“, people will begin to adopt it. Grid-parity is affected by many things such as location in the U.S. and time of use. PV is more attractive to consumers in the Southwest and the Northeast U.S. because those locations are closer to grid-parity. Bottom line? Once grid-parity happens there will be a solar gold rush.

These challenges to the RE markets are surely not insurmountable. Armed with data from these presenters we can increase renewable adoption rates in the near future.

Cross-posted at the 2012 World Renewable Energy Forum blog.

Colorado Energy-efficiency Law Spurred $166 Million in Investments

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User  Riisipuuro

Over the last 5 years two Colorado utilities (Xcel and Black Hills) have invested about $166 million in energy efficiency programs for their customers. This is an incredible of amount of money and an incredible amount of energy saved in just half a decade. Utility energy efficiency programs can not only help you reduce your monthly energy bill but also reduce greenhouse gas emissions from utility coal-fired power plants. Whether it's compact fluorescent lightbulbs, caulking around windows and doors, or adding insulation to a crawl space or in the walls, weatherization methods not only save you serious money quickly, but also increase the comfort-level of any living space. Remember, before adding any supplemental renewable energy like solar PV, solar thermal, or wind it's important to have a full energy audit of your property to learn how to use the least amount of energy possible. Reducing your energy consumption by becoming more energy efficient will help decrease the size and cost of a renewable energy system. Plus energy efficiency is cool!

Green Energy Puts Green in Homeowner Wallets

In this Reuters article a homeowner purchases a windmill and estimates his return on investment (ROI) will happen in about seven years. Seven years. And while he waits for seven years to go by he is paying zero dollars for his electricity. And sometimes he even sells power back to the grid and makes some money. Not bad eh?

But beyond that is the larger trend that the cost of residential renewable energy technology is dropping quickly whether due to cheap hardware from Asian markets, government subsidies, or utility incentives. Once the initial capital expenditures occur for renewable energy, the fuel is free for the foreseeable future. Free fuel is the most exciting prospect to me. Can you imagine a world where every house, business, and community (see solar gardens) is generating clean power from the sun and wind? I know its blasphemous to some, but like it or not we are headed that way.

First things first - get an energy audit for your building. It is important to make your structure as efficient as possible before adding your own renewable power. An energy audit and subsequent weatherization / retrofits are a good way to put more greenbacks in your pocket, whether you want renewable power or not.

Energy Efficiency Is Good Policy, Good for Economy

I'd have to agree with Sen. Jeanne Shaheene (D-NH): "We should use less energy." The Senator lays out a compelling argument for making our residential and commercial buildings more energy efficient. Not only is the return on investment in energy efficiency quick but it helps to create local jobs that can't be outsourced. We need HVAC experts, window installers, energy auditors, and lighting experts to help teach us the way our buildings consume energy and the way to get them to consume less. Really, energy efficiency is a big win for our economy. And why would you want to waste energy when you don't have too?

Boyer's Coffee: Conserving Resources, Saving Money, Doing Good

Great article on how Boyer's Coffee, a Colorado company, has implemented sustainable methods into their business to save money, reduce their energy consumption, reduce waste sent to the landfill, and enhance their recycling efforts. It's stunning to me what a business can do to reduce, reuse, and recycle and oh yes, save a ton of money with sustainable business practices. Boyer's estimated the ROI on every sustainable initiative they did - whether it was recycling cardboard delivery boxes, reducing the amount of raw material types in their coffee packaging, or finding a company to take and recycle the excess packaging waste.  Sustainable behavior is not only smart for the environment and the community you live in but is smart business. Kudos to Boyer's for taking the sustainable path. Your children, the planet, and shareholders thank you.