Renewable Energy Education at NC State

October 31st, 2012

Happy Halloween everyone! Before we all dress up in our favorite costumes and enjoy a cool night of trick-or-treating in the triangle, I wanted to give a shoutout to the NC Solar Center at North Carolina State University. If you live in or near North Carolina and want to expand your knowledge on renewable energy, gain training and certification for solar and wind, or simply want to learn more about something good for the planet, check out their website, http://ncsc.ncsu.edu/

The NC Solar Center House on campus of North Carolina State University

The aim of the NC Solar Center is to advance clean energy for a sustainable economy, and they do this primarily through education and training of students and professionals in the industry or have a desire to enter the solar world. I've been familiar with the solar center since 2005 when I began my graduate studies at NC State, but it wasn't until this year that I became more involved and registered for their Solar PV training class, taught by David Del Vecchio from Stata Solar in Chapel Hill. It was an intense 5 day course that was both extremely educational and enjoyable. I couldn't believe how much I had learned in such a short period of time. It discusses not only the overall solar landscape in North Carolina, but dives well into the makeup of a solar array including panels and panel types, racking, max point trackers, inverters, batteries, evaluating solar availability, using PV Watts, string sizing, wiring, safety, and much more. At the end of the week we were all given the option to take the NABCEP PV certification exam, which I did and passed relatively easily with 100% credit given to the strong teaching skills of Mr. Del Vecchio. On the last day of class, we were all escorted to the NC Solar center's outdoor training facility for a tour of the grounds and a hands-on learning experience on how to properly install an array on a pitched roof. Everyone was given the opportunity to drill, mount, connect, and place the solar array into service. Given that the day was reasonably nice out, we were fortunate enough to see some electricity flowing from the inverter! If you are looking for a short, intense, and fun course on PV education and training, I highly recommend this course. Their is also an online course offered as well for distance education starting November 6th, check it out at http://ncsc.ncsu.edu/index.php/education-training/workshops-special-events/

The NC Solar Center Provides On-Site Training for installation of Solar Arrays for students and professional

I was very impressed with what I learned in the PV classes and wanted to further my education in the field, so I registered for the solar heating class and the CREM course, Certificate in Renewable Energy Management. If you complete 3 classes from the NC Solar Center, you receive a Renewable Energy Technology Series Diploma, a great accomplishment for your work and also an advantageous degree to list on your resume if you are seeking a job in the industry. The solar heating class was quite the undertaking. Again, it was an intense 5 day course with on-site installation training and a NABCEP certification exam, but the amount of material was simply overwhelming. There was SO much to know about the subject! I tackled the books and absorbed as much as my sponge-brain could soak up. I came out of the class feeling like a champ. Bill Guiney, our instructor, is a director at Johnson Controls group and an expert in Solar Water heating and cooling. With over 30 years of experience in this field, he may be one of the world's foremost authorities on the subject. It was a pleasure learning from him and there wasn't a single question he couldn't answer effectively.

The CREM class was my final course in my renewable series diploma and possibly was my favorite class. It was a perfectly balanced mix of renewable education, business class, and group-style working projects that I believe every student gained immensely from. There are 36 hours live and online classes spread over a 6 week course and includes quizzes, seminars, and finishes with a group project presented to the class and to local professionals. I felt like this class truly was the 'nugget' of information I'd been looking for, and I can't recommend it highly enough. The instructor, Lyra Rakusin, along with guest instructors from around the Solar Industry, provided insight into all aspects of renewable energy from the basics of PV to financial modeling, tax credits, partnership finance structures, legal procedures, sales, marketing, and performance contracting.

Finally, I want to thank everyone at the NC Solar Center for their work and dedication to renewable energy. I and my classmates worked very hard and learned a great deal and immensely enjoyed it. If you are interested in learning more about solar and renewable technology, visit the NC Solar center to find the right program for you!

Happy Halloween!

My classmates and I at the final day of the CREM course offered by the NC Solar Center

Is this the end of the 'Tax Credit' Era?

Oct. 27th, 2012

New large scale solar farms like the one shown above may see a drop in production if the solar tax credit is repealed

While the candidates petition for your vote in the elections over the next 10 days, there is a huge buzz in the North Carolina solar industry on the future of the eligible 35% state tax credit, while even bigger worries over the federal 30% Investment Tax Credit creates a worry that the 'golden era' of the tax credits may be in jeopardy. Lawmakers have focused heavily on cutting spending to help balance the budget, and with repeated failed solar businesses making headlines, it makes for an easy target in a cutthroat battle of congress.

So what will happen if the tax credits just disappear? A good answer might be to take a look at wind. The federal production tax credit for wind production has just over 2 months left of life before it expires. And since wind projects need to be placed in service before the incentive expires to receive the tax credit, there is very little activity going on in new wind power construction. Is the industry dead? No. Of course not. But this is a huge blow for sure. Expect to see a similar slowdown in new solar if the tax credit is repealed early, which is a nice way of saying solar will pretty much fall off the face of the map in the US.

With the wind energy tax credit expiring this year, new wind production has seen a sharp decline.

Another way of seeing what might happen is to look at Spain. Generous government policy and feed-in tariffs for solar production were enacted in 2004 and the country saw a major boom in the solar industry. But in 2008 when the financial crisis struck Europe, the Spanish government made sweeping cuts to federal subsidies, including solar, which took a huge hit. Spain went from being one of the worlds largest solar producers to miniscule within just a few years. It just goes to show you how closely tied energy is to government policy in the world.

But the answer for the investor is simple. With the tax credits and other subsidies, solar power is a good long term investment. But without those added incentives to sweeten the deal, it's not. Those who are coming into the market because it makes good financial sense will take their money elsewhere, and the industry will be left to fight for the remaining scraps of business it can find. Soon the solar installers, workers, electricians, plumbers, and manufacturers will leave the field as well. The 15,000+ new solar jobs and $3.7 billion in revenue created in North Carolina alone will be in jeopardy.

Whether or not the tax credit is repealed in 2013, we must look at how it has changed the solar industry since it was set in place. For one, cost has come down significantly. Even without the tax credit, solar power is more affordable today than it was prior to its implementation. It has created thousands of jobs in North Carolina, and hundreds of thousands of jobs across the U.S.  The carbon offset has been tremendous, and energy costs have been lowered significantly because of it, which in turn is passed onto the consumer.

While I personally never thought a permanent tax credit for solar energy was the solution, I do
believe that the repeal should be gradual, and if at all possible, restructured to better suit individual investors and residential families. The cost of installing a solar array on a residential home is still quite high, and the opportunity for a family to take advantage of the tax credits offered is low. For one, not many families make the necessary income to take advantage of the tax credit, which is capped at $10,500. The corporate tax credit is capped at $2.5 million, allowing for much larger solar installations. But even then, you will be hard pressed to find many North Carolina companies with such a large appetite. Hence we see the several financial modeling tricks such as flip partnerships and sale leasebacks that can make the accounting quite messy. Perhaps a better approach would be to allow for a grant in lieu of tax credits, similar to the Federal 1603 grant that expired last year. Allow better net metering standards for residential customers to make it easy to connect to the grid and offset their utility bills. Enable third party electricity sales and offer solar leasing to residential homes that would remove the burden of a large financial investment of a solar array.

No matter what happens after the elections in November, it is important to not forget why we are all here in the first place. We see a need for a change and a desire to remove ourselves from dependence on fossil fuels, foreign oil, and to create a better environment and atmosphere for ourselves and future generations. We are likely not going to run out of oil and gas in the next few years, not even in the next 20 years, but we will eventually have to make a choice to either continue to rely on a diminishing power supply coupled with increasing costs, or make a move to a long term viable, safe alternative. One day we will have to change our ways. And the sooner we can become a part of it, the sooner we can all benefit from it.