Renewable Energy in Texas Soars!

This summer, Texas needs every available megawatt to power our grid and renewable energy generation continues to reach new heights in ERCOT, providing us with reliable, affordable power.

On June 17th, ERCOT hit a new wind generation record with 27,849 MW generated across the state. The following day, wind generated 27,202 MW of energy for the Texas grid, coming in at #3 for all-time wind generation.

On June 18th, ERCOT hit a new renewable generation record with 37,946 MW generated across the state.

On June 22nd, ERCOT hit a new solar generation record with 19,287 MW generated across the state.

Battery energy storage also continues to break records when the grid needs it most, such as last month during the May 8th Weather Watch issued by ERCOT when a record 3,195 MW of energy from batteries was utilized to fill the gaps brought on by traditional power plant outages that were higher than expected.

Net metering vs. Net billing explained

Ideally, your home’s solar system would perfectly match your electricity needs – no more and no less. However, there are times when the panels will generate more power than you consume (such as during sunny summer days), and other times when they may not generate enough (like on shorter or cloudier days and nights). This is where Net Metering and Net Billing come into play. These systems allow you to use the grid as storage, trading in any excess energy your panels produce for credits on your bill. Then, when your solar system can’t keep up with your electricity needs and you must rely on the grid, these credits can be used to offset the cost.

Net metering and net billing compensation structures, types of net metering and net billing, and where these programs are available nationwide are discussed in this article.

Net metering vs. Net billing

It is important to remember that net metering and net billing aren’t synonymous, despite their similarities. Depending on how participants are compensated, both programs compensate solar owners for transferring electricity to the grid when their panels overproduce. Generally, net metering credits equal the retail electricity rate (what you pay for electricity as a utility customer). On the other hand, net billing credits are equal to wholesale rates (what your utility company pays for electricity)

Net metering

Net metering allows you to receive bill credits, but the exchange is not typically in the form of money. Instead, these credits are stored and can be used when needed on overcast days. They can be carried over each month and have a one-to-one ratio with grid-produced electricity, meaning your solar panels’ output is equivalent to that of the grid. This simplifies your energy bill as you are only charged for your net usage, or consumption minus production. Net metering programs are a valuable method for solar owners to “store” their excess energy, making home solar systems even more beneficial. However, utility companies argue that since retail prices include business costs in addition to electricity value, net metering credits exceed the value of electricity and delivery.

Net billing

In net billing programs, you can sell excess energy generated by your solar panels to the utility, typically at wholesale prices, instead of “banking” the credits. Net billing is a monetary exchange in which the energy generated by your home solar system is treated like that of a large-scale solar project. However, with net billing, you will typically receive a lower compensation rate than with net metering.
Types of solar compensation programs

Types of solar compensation programs vary from state to state and utility to utility. As the renewables industry has grown and matured, different types of net metering and billing programs have emerged.

Retail net metering

One commonly used approach is retail net metering, where individuals are credited at the retail electricity rate for the energy generated by their solar panels. This can boost the worth of residential solar systems but may lower utility companies’ profits. Retail rates often encompass more than just energy expenses, with a portion being allocated to cover utility staff, maintenance, and other costs. Due to this, several utility companies are advocating for revisions to net metering policies that would offer significantly lower compensation rates for solar system owners.

Virtual net metering

Virtual net metering, also known as shared net metering, has advantages for those involved in collective renewable energy initiatives such as community solar. This system provides the same monetary reimbursement as traditional net metering, but with the added convenience of not needing the solar panels to be situated on the participants’ own properties. Instead, community solar members are typically assigned a share of a larger solar installation. If their designated portion generates surplus electricity that goes back into the grid, they will receive equal compensation through virtual net metering as if those panels were installed on their own roof.

Avoided-cost

Bill credits for avoided-cost bills differ from most retail net metering programs in that they do not correspond to a one-to-one compensation arrangement. In place of providing electricity to their homes, participants receive credits equal to the utility cost saved. As avoided-cost rates do not involve a one-to-one exchange, they can be categorized as net billing rather than net metering since they are monetary and not a one-to-one exchange.

Where can one find net metering and net billing programs?

Utilities have a tendency to resist net metering programs, and policies at the state and local level are subject to change. As previously stated, these compensation structures differ from one state or utility to another. For instance, Idaho and Texas do not require net metering, but some utilities may still provide it. To determine the specific programs offered in your area by your utility, it is advisable to seek advice from a reliable installer in your vicinity.

Some important points to remember are about net metering and net billing programs. These programs allow excess energy produced by home solar systems to be transferred to the grid, resulting in credits for the homeowner. The value of these credits is often based on the retail rate of electricity, but can also be lower depending on the program. As utilities often object to net metering, other compensation options are gaining popularity.

KEY TAKEAWAYS

  • Net metering and net billing programs use overproduced electricity from home solar systems by transferring the excess energy to the grid. You receive credits for this energy you send to the grid in exchange.
  • Net metering transactions are usually one-to-one, so the credits are often equal to the retail rate of electricity (aka what you pay).
  • Net billing credits are often equal to the wholesale rate of electricity (aka what your utility pays), which is less than the retail rate.
  • Utilities tend to oppose net metering programs, so alternative compensation programs are becoming increasingly popular.
  • Incentive and compensation programs like net metering and net billing increase the value of solar panel systems .

Rural Energy for America Program

Maximizing Your Solar Investment with USDA Reap Grants

Introduction:
  In an era where sustainability and cost-efficiency are at the forefront of business decisions, investing in renewable energy sources like solar power has become increasingly popular. The USDA’s Rural Energy for America Program (REAP) offers funding and guaranteed loan financing to rural small businesses and agricultural producers looking to implement solar energy systems or make energy efficiency improvements. In this article, we will delve deeper into the benefits of REAP grants and how they can maximize your solar investment.

Understanding REAP Grants:
  The REAP program provides financial assistance to eligible entities in rural areas, covering up to 50% of eligible project costs. With recent legislative changes, the maximum grant size has increased from $500,000 to $1 million, allowing for more substantial projects to be funded. This expansion reflects a commitment towards supporting rural America in becoming more energy independent while reducing their carbon footprint.

Eligibility Criteria:
  To qualify for a REAP grant, applicants must either be qualified agricultural producers or for-profit rural small businesses that meet SBA size standards. While there are certain location requirements for small businesses, agricultural operations can be situated in non-eligible areas. The application process is straightforward but requires meticulous attention to detail in submitting all necessary documents.

Application Process and Funding Rounds:
  Under the new program structure, quarterly funding rounds provide increased opportunities for applicants to secure grants. The first round commenced on April 1st this year and closes on June 30th, followed by subsequent rounds ending on September 30th. If an application is not awarded within the fiscal year due to scoring issues or competition volume, it will automatically roll over until October when reapplication may be necessary.

Benefits of REAP Grants:
  One of the most common queries revolves around how much funding a REAP grant can cover – up to half of total project costs including solar installations. Combining federal tax incentives such as the Federal Solar Tax Investment Credit (ITC) and depreciation benefits could see up to 80% coverage on project expenses through a strategic approach.

Project Implementation Timeline:
  Upon receiving approval for a grant application from your local USDA Rural Development Office, work can commence on your solar project immediately post-acceptance or after official award notification depending on preference. However, delaying installation may impact potential savings accrued through reduced energy costs and eligibility criteria concerning tax credits tied specifically with year-end installations.

This year, China dominated clean energy growth, not the US, UK, or Germany.

In 2023, the world added renewable energy at a breakneck pace, a trend that, if amplified, could help the planet move away from fossil fuels and prevent severe global warming.

Many nations adopted policies that supported renewables, some citing energy security concerns. Clean energy is often the least expensive, explaining some of the growth. In addition to high interest rates, there were persistent challenges obtaining materials and components in many places due to these factors.

In 2023, more renewable energy will be installed than all the installed power capacity of Germany and Spain combined, according to the IEA.

Mohammed bin Rashid Al Maktoum Solar Park hosts the COP28 United Nations Climate Summit in Dubai, United Arab Emirates on Monday, Dec. 11, 2023. Solar power is now the cheapest form of electricity in most countries. AP Photo/Joshua A. Bickel.

According to the International Renewable Energy Agency, China, Europe, and the US set solar installation records in a single year.

With 180 to 230 gigawatts of additions, China dwarfed all other countries, while Europe added 58 gigawatts.

Between December 2022 and November 2023, solar panel prices in Europe fell a staggering 40% to 53%, reaching record lows. According to Michael Taylor, senior analyst at IRENA, the deployment in Europe has been at breakneck speed.

Globally, solar energy is expected to surpass hydropower in 2023, but hydropower will still make more clean power for some time because it can produce electricity around the clock.

California continues to have the most solar energy in the U.S., followed by Texas, Florida, North Carolina, and Arizona. “US solar growth was largely influenced by state and federal incentives” , according to Daniel Bresette, president of the Environmental and Energy Study Institute.

Solar manufacturing also grew in the United States. As a result of the Inflation Reduction Act, more than 60 solar manufacturing facilities were announced in the last year, according to Abigail Ross Hopper, the president and CEO of the Solar Energy Industries Association.Wind energy will power nearly 80 million homes by 2023, making it a record year for wind energy.

According to Wood Mackenzie research, most of the growth, or more than 58 gigawatts, occurred in China. According to the Global Energy Monitor, if planned projects are all built, China will surpass its ambitious 2030 goal of 1,200 gigawatts of utility-scale solar and wind power capacity five years ahead of schedule.

Among the few wind markets that grew this year were China, the Global Wind Energy Council reported. Wood Mackenzie reported that installations in Europe were down 6% year-over-year due to faster permitting and other improvements in key markets like Germany and India.

Many ocean wind developers had to renegotiate or even cancel project contracts as a result of high inflation, rising interest rates, and rising building materials costs, while some land-based wind developers had to delay projects until 2024 or 2025 due to short-term challenges.

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‘Water batteries’ could store solar and wind power for when it’s needed

The San Vicente reservoir in San Diego County stores water from as far away as the Colorado River. Pumping water into a smaller
reservoir in the surrounding mountains could store excess solar power until it’s needed, when the sun sets.
Dan Charles for NPR

The San Diego County Water Authority has an unusual plan to use the city’s scenic San Vicente Reservoir to store solar power so it’s available after sunset. The project, and others like it, could help unlock America’s clean energy future.

Perhaps a decade from now, if all goes smoothly, large underground pipes will connect this lake to a new reservoir, a much smaller one, built in a nearby canyon about 1100 feet higher in elevation. When the sun is high in the sky, California’s abundant solar power will pump water into that upper reservoir.

It’s a way to store the electricity. When the sun goes down and solar power disappears, operators would open a valve and the force of 8 million tons of water, falling back downhill through those same pipes, would drive turbines capable of generating 500 megawatts of electricity for up to eight hours. That’s enough to power 130,000 typical homes.

“It’s a water battery!” says Neena Kuzmich, Deputy Director of Engineering for the water authority. She says energy storage facilities like these will be increasingly vital as California starts to rely more on energy from wind and solar, which produce electricity on their own schedules, unbothered by the demands of consumers.

Californians learned this during a heat wave this past summer. “Everybody in the state of California, I believe, got a text message at 5:30 in the evening to turn off their appliances,” Kuzmich says. The sun was going down, solar generation was disappearing, and the remaining power plants, many of them burning gas, couldn’t keep up with demand. The alert worked; People stopped using so much power, and the grid survived.

Yet earlier on that same day, there was so much solar power available that the grid couldn’t take it all. Grid operators “curtailed,” or turned away, more than 2000 megawatt hours of electricity that solar generators could have delivered, enough to power a small city. That electricity was wasted, and there was no way to store it for later, when grid operators desperately needed it.

“We have a problem if we’re going to have these continuous heat waves,” Kuzmich says. “We need a facility to store energy so that we don’t need to turn off our appliances.”

Pumped hydro has a history

The technology that San Diego is proposing, called pumped hydro energy storage, is already operating at more than 40 sites in the United States. Some of the largest ones, which can generate more than 1000 MW for up to eight hours, were built during the 1970s and 1980s to store electricity that nuclear power plants generated during the night. But few new plants have been built over the past 30 years in the U.S. China has continued to build such plants.

Now, the need to store power from renewable sources is reviving interest in this old technology in the U.S.

“Just in the past several years, 92 new projects have come into the development pipeline,” says Malcolm Woolf, president and CEO of the National Hydropower Association. Most of the projects, however, are in the planning stages and still need regulatory approval and financing.

Thanks to the climate bill that President Biden signed in August, these projects now qualify for the same 30 percent tax credit that solar and wind projects enjoy. “That is an absolute game-changer,” Woolf says. “A number of these projects that have been in the pipeline for a number of years now suddenly are a whole lot more bankable.”

Water batteries have a lot of competitors, when it comes to storing energy. Some companies, including the car company GM, are exploring ways for the electric grid to draw emergency power from the batteries in millions of privately owned electric cars. Others are working on ways to store electricity by compressing air or making hydrogen. Still others are focused on ways to manage the demand for electricity, rather than the supply. Electric water heaters, for instance, could be remotely controlled to run when electricity is plentiful and shut down when it’s scarce.

Pumping water, however, has some advantages. It’s a proven way to store massive amounts of power. The San Vicente project would store roughly as much electricity as the batteries in 50,000 of Tesla’s long range Model 3 cars. Water batteries also don’t require hard-to-find battery materials like cobalt and lithium, and the plants can keep working for more than a century.

The biggest problem with them, at least according to some, is that it’s hard to find places to build them. They need large amounts of water, topography that allows the construction of a lower and higher reservoir, and regulatory permission to disturb the landscape.

Woolf, however, says the perception of pumped hydro’s limited prospects “is a myth that I am working hard to disabuse folks of.” Pumped hydro facilities, he says, don’t have to be as massive as those of the past century, and they don’t need to disturb free-flowing streams and rivers. Many proposals are for “closed-loop” systems that use the same water over and over, moving it back and forth between two big ponds, one higher than the other, like sand in an hourglass.

Three of the proposed projects in the U.S. that appear closest to breaking ground, in MontanaOregon, and southern California, all would operate as closed loops.

Kelly Catlett, director of hydropower reform at American Rivers, an environmental advocacy organization that has highlighted the environmental harm caused by dams, says that “there are good pumped storage projects, and there are not-so-good pumped storage projects.”

Her group won’t support projects that build new dams on streams and rivers, disrupting sensitive aquatic ecosystems. But San Diego’s plan, she says, “looks like something that we could potentially support” because it uses an existing reservoir and doesn’t disturb any flowing streams. Also, she says, “I’m unaware of any opposition by indigenous nations, which is another really important factor, as they have borne a lot of the impacts of hydropower development over the decades.”

The board of the San Diego County Water Authority, and San Diego’s city council, are expected to vote soon on whether to move ahead with a detailed engineering design of pumped hydro storage at the San Vicente reservoir. The state of California is chipping in $18 million. The design work, followed by regulatory approvals, financing, and actual construction, is likely to take a decade or more.

FAQ’s about Solar

  1. HOW IS SOLAR ENERGY HARNESSED? There are three primary ways to use the light and heat of the sun. First, photovoltaics (PV) directly converts energy from sunlight into electricity. Second, concentrating solar power (CSP) plants use mirrors to concentrate heat from the sun to drive utility scale, electric turbines. And third, heating and cooling systems collect thermal energy from the sun and use the heat to provide hot water and air conditioning.
  2. HOW MUCH SOLAR EXISTS TODAY? There are more than 8,300 utility scale solar projects in the United States capable of generating over 67 gigawatts of solar electricity. That’s enough to power 12.7 million homes and offset 76 million metric tons of CO2 emissions.
  3. CAN SOLAR SAVE ME MONEY? Yes! Nationwide, large utility companies are turning to solar in order to shift away from carbon resources and make renewable energy more accessible to customers. Solar relieves stress and strain on the electric grid and reduces costs for utilities. Those savings are then passed down to customers.
  4. DO SOLAR PROJECTS CREATE SOUND? No, solar farms do not create sound that’s audible outside the project.  Additionally, solar projects use minimal water and do not generate any type of air, water or ground pollution. In 2018, a new solar project was installed every 100 seconds.
  5. SOLAR ENERGY INDUSTRIES ASSOCIATION DO SOLAR PANELS CREATE GLARE? No, solar panels are designed to absorb sunlight and not reflect it.
  6. HOW ARE SOLAR PROJECT SITES IDENTIFIED? A number of factors are considered to identify a suitable solar project location. These include close proximity to the grid transmission network (power lines), ease of constructability, transportation access, low environmental impacts, and flat land.
  7. CAN SOLAR PROJECTS BE LOCATED OUT OF SIGHT OF HOMES AND BUSINESSES? Developers take great care in locating and designing projects to minimize impacts to residences, and there are several factors that are important to siting a solar farm effectively. If designed correctly, solar farms will not change the look or feel of a community and there are many projects that coexist with residential areas. At only 8-12 feet high, solar arrays have a low profile and landscaping is often used to shield the project from view.
  8. DOES THE SOLAR INDUSTRY CREATE JOBS? As of 2018, over 200,000 solarrelated jobs were created in North America. That’s nearly a quarter of a million families who help support the growth of clean energy nationwide.  Additionally, construction and operations jobs in local communities generate increased business for local services like hotels and restaurants. 12.7 million homes could be powered by the current installed solar capacity in the
  9. U.S. SOLAR ENERGY INDUSTRIES ASSOCIATION CAN SOLAR PROJECTS HELP SAVE WATER? Yes, in areas of the country where water resources are scarce, solar helps reduce the amount of water utilities need to generate electricity.
  10. WHY BUILD A SOLAR PROJECT ON FARM LANDS, WON’T THAT BE LAND OUT OF PRODUCTION? Solar projects complement agriculture by helping farmers manage commodity price shifts, make money, and protect their way of life. Solar lease agreements include a binding commitment that project owners will return land to its prior use once a project has completed its useful life. Additionally, native grasses or wildflowers are typically planted that improve soil and water quality.
  11. ARE THERE ANY COMMUNITY BENEFITS TO HOSTING A SOLAR PROJECT? Yes, solar projects lower electricity bills, provide economic growth and increase energy independence for communities.  A typical solar project will generate 30 years of new steady tax revenue to fund schools and other community services while helping keep taxes low for homeowners.

thanks to Solar Energy Industries Association: www.seia.org for the information

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Solar Energy Pros and Cons

Should I install solar panels?

You should install solar panels if you’re looking for a way to save on energy expenses and control your operating expenses with a set monthly expense.   Installing solar panels on your business is financially and environmentally responsible. Using solar power will lower your electricity bills and earn you tax incentives. Solar panels are also great investments because they add value to your business and are exempt from property taxes.

Solar energy advantages and disadvantages

Benefits of solar panels

There are many advantages of solar energy to consider when you’re deciding whether or not to install solar panels, such as:
  1. Reduced electricity bills Using solar energy instead of traditional energy sources can result in financial savings. Over a 20-year period, you could save anywhere from $10,000 to several million dollars, depending on your state, building size and electricity usage. Unlike paying utility bills, paying off a solar panel system gets a return on investment.
  2. Financial support from the government Federal and state tax benefits are available when you install solar panels on your business. Now with the Direct Pay option for non profits along with taxpayers there is the potential to claim 30 percent of installation costs, with benefits varying by state. In some instances it may be possible to get a solar installation with no out-of-pocket costs.
  3. Energy independence The sun is an infinite source of energy, unlike coal and natural gas, and solar panels can be installed practically anywhere. The electrical energy output of the panels depends on exposure to direct sunlight; anything that gets in the way of this reduces the output. Using solar panels allows you to reduce dependence on foreign oil and fossil fuels, leading to a more stable and predictable energy bill, especially during times when the demand for energy is high.
  4. Reduced carbon footprint Solar energy is able to generate power without giving off any dangerous emissions. While there is some carbon footprint from producing and distributing solar panel infrastructure, the energy produced from solar panels is clean and free of pollutants, and it emits no greenhouse gases.
  5. Longevity and little maintenance Most systems last for 20 or more years. During that time, solar panels and equipment require little maintenance.  Solar energy technology is always improving, so the same size solar panels from last year are even better today.

Disadvantages of solar panels

Some disadvantages associated with solar energy systems include:
  1. High initial cost While a reduced electric bill is an advantage, initial costs for the equipment, panels and installation could be more quite high. If you have direct-current devices operating from alternating-current sources, they’ll need a transformer. These transformers aren’t 100% efficient, though, so the operating cost is higher with an AC source than with a DC solar panel.
  2. Weather dependence The most important element for solar panels is the sun. If you live in an area prone to cloudy days for an extended period, this will negatively impact how the system runs. Your system will likely be less productive in winter months than summer months.
  3. Inconvenience in inner cities and other areas with limited space A solar system requires a decent amount of space to install the equipment and have everything run smoothly, and so solar panels might be inconvenient in inner cities and other areas with limited space. About 100 square feet of roof space is required for every 1 kW of conventional solar panels. If you have limited space or a small roof, you might not have the space for all the solar panels needed to power your business.
 
Thanks to consumeraffairs.com for the information provided in this article

Green Facts for your Business

 

A growing number of businesses are choosing to go green. Taking steps to make their workplaces environmentally friendly by introducing materials and operational methods that are less harmful to the environment than traditional methods and materials.

 

  Some of the reasons for the switch:

Costs

Going green for businesses used to be costly in the initial stages. Installing new equipment that produces less waste or buying new appliances that cut down on energy use can be expensive. However, with new tax incentives, accelerated depreciation and savings over time on the monthly energy bill all add up to significant savings.

Reducing & Recycling Materials

Strategies — like utilizing email instead of using paper to fax, purchasing reusable ink cartridges and recycling plastic and glass in the workplace — significantly lower waste. Printing on both sides of a sheet of paper before throwing it away reduces paper use by up to 50 percent. For businesses spanning a large office space, consolidating networks and setting up wireless networks save on power and cabling requirements.

Priorities

Some priorities of manufacturers in going green are sustainable packaging, water and environment stewardship, and climate and energy protection. Some large companies have been continuously involved in sustainability-focused agendas, while others have answered computer waste disposal issues by setting up large recycling plants.

Customer Relations

Going green can draw more customers to your business. Businesses that promote environmentalism as part of their mission statement can gain loyal customers and protect the environment.

 

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Why take your Company Solar?

With the ever increasing costs for electric power, the high price of oil and the growing concern for the environment, many businesses are finding alternative sources of energy. Solar renewable energy is a sustainable choice and one that can be used in many commercial situations.   

Top of the list of reasons to go solar are the reduced operating costs. Solar power systems will reduce or even eliminate your company electric bill. Businesses of all sizes can benefit from the money savings which can have a tremendous impact on operating budgets. 

Having a solar power system installed will lock in the prices for up to 20 or 30 years. Better planning of operating costs month over month.  

ROI shows time and again that going Solar is a smart investment. Government incentives as well as a speedy depreciation of the costs means the utilization of solar power is a sound investment. With the new Inflation Reduction Act signed in 2022 it means it is a good financial decision for public agencies, nonprofits and most businesses.  

Once installed, a solar power system will require little or no maintenance at all, most especially if there are no batteries being used. The system will provide electricity quietly and cleanly for 25 to 40 years. Many solar panels carry a 25-year warranty. With Caldus Energy the system will have a Solar Insure plan covering it for 20 years.

Utilizing electricity from solar power will result in lower consumption of fossil fuels, reducing greenhouse gas emissions and pollution. By using this alternative source, any business or company can show dedication in the battle against global warming and can reduce the country’s dependence on foreign sources. 

Going green will not only reduce operating expenses, it is also a great PR and marketing tool. Having an environmentally responsible image is good for any company, as it can generate a positive response from consumers.

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