solar innovation – Caldus Energy

The Climate Pledge announces 100 new signatories

Posted on 03/12/202406/17/2024 by D.Smith

The Climate Pledge, a commitment to meet the Paris Agreement 10 years ahead of schedule, has gained significant traction with over 300 businesses from 51 industries and 29 countries now on board. This marks a remarkable growth of almost 600% in signatories since its announcement by Amazon and Global Optimism. The latest additions include major players such as Maersk, SAP, Weyerhaeuser, Sunrun, and HARMAN, among others.

Climate Pledge signatories must agree to:

Measure and report greenhouse gas emissions on a regular basis.
Implement decarbonization strategies in line with the Paris Agreement through real business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies.
Neutralize any remaining emissions with additional, quantifiable, real, permanent, and socially beneficial offsets to achieve net-zero annual carbon emissions by 2040.

“The effects of climate change are becoming more and more apparent in our surroundings and daily lives, and we firmly believe that the private sector must continue to innovate and collaborate across regions and industries in order to decarbonize the global economy at scale,” said Andy Jassy, Amazon CEO. “It’s an encouraging sign that more than 300 businesses have now signed The Climate Pledge, which commits them to confronting climate change head-on by incorporating real business changes that will make a lasting impact on our planet. We can only do it together.”

Carbon emissions have already been reduced by many of the new Pledge signatories:

Maersk

Maersk is providing industry-leading green customer offerings across the supply chain, including Maersk ECO Delivery, which targets emission reductions in ocean shipping. As of 2020, Amazon participates in this service. As a result of Amazon’s participation in 2021, emissions will be reduced by approximately 20 KTonnes of CO2e (the equivalent of 50 million average passenger vehicle miles).

According to Soren Skou, CEO of A.P. Moller-Maersk, addressing the climate emergency and reducing carbon emissions from our customers’ supply chains is a crucial goal for our company. That’s why we accelerated our efforts in January 2021, committing to achieving net-zero emissions by 2040 – ten years earlier than initially planned and in alignment with the Paris Agreement. To achieve this ambitious target, urgent action is needed from all of us. That’s why we are excited about joining The Climate Pledge alongside some of our key customers. We see this as an opportunity to collaborate, exchange knowledge and solutions, and drive significant progress towards a more sustainable future together.

SAP

Earlier this year, SAP accelerated its goal of reaching net-zero carbon emissions by 20 years.

SAP CEO Christian Klein said, “Climate change is one of the greatest challenges of our time, and now is the time to act.” With the help of technology, we can create a lasting, positive impact on future generations, and SAP is proud to join The Climate Pledge.

Weyerhaeuser

In addition to managing forests sustainably and manufacturing wood products, Weyerhaeuser protects wildlife habitat and serves as a natural climate solution through carbon sequestration and storage, as well as providing a sustainable supply of wood for homes and countless other products. After harvesting, Weyerhaeuser plants 130 million to 150 million trees each year to reforest 100% of its timberlands.

According to Devin W. Stockfish, president and CEO of Weyerhaeuser:“Sustainability has been a guiding principle at Weyerhaeuser for well over a century, and we have long believed that our company has an obligation to make a positive impact in our communities and for society more broadly,” said Devin W. Stockfish, Weyerhaeuser president and CEO. “Our working forests and the sustainable wood products we produce play a critical role in helping to mitigate the impacts of climate change. And as part of our ongoing sustainability efforts, we have published our inaugural, peer-leading Carbon Record and established a leadership position among our North American industry peers by setting an ambitious, science-based greenhouse gas reduction target. Signing on to The Climate Pledge reflects our commitment to achieve these goals and to help lead on the path to net-zero emissions globally.”

The business community must have a clear path forward: Step up and accelerate emission reductions so that we might be able to avoid the worst of the damages yet to come.

Former Climate Chief of the United Nations, Christiana Figueres founded Global Optimism.

Sunrun

Sunrun’s systems have prevented 8.1 million metric tons of carbon emissions, which is equivalent to negating 20 billion miles driven by an average car.

“At Sunrun, people and the planet are our north star,” said Mary Powell, Sunrun CEO. “Since our founding, we’ve helped more than 660,000 customers across the U.S. switch to clean energy and reduce their carbon emissions through our home solar and battery storage systems, and we’re just getting started. We’re laser focused on finding more ways to electrify homes and enable all Americans to take action on climate change, reduce energy costs, and gain energy independence. We are proud to demonstrate this commitment by signing the Climate Pledge alongside other sustainability leaders.”

HARMAN

HARMAN’s strong emphasis on purpose extends to its commitment to sustainability, which is a crucial business pillar. In line with this, HARMAN has set a goal to achieve net-zero carbon emissions across all three scopes by 2040. To actively work towards this goal, the company has established ambitious and measurable short-term targets to decrease emissions, energy consumption, and waste throughout its value chain. Additionally, HARMAN has introduced product lines made from sustainably sourced and recycled materials and plans to switch to 100% renewable energy for all its factories by 2025.

“At HARMAN, we know that driving sustainability is an ongoing journey that benefits from constant collaboration,” said Tom Mooney, HARMAN senior director of Government Affairs and Sustainability. “Each of the other Climate Pledge signatories is as committed as we are to building a more sustainable future and understands the value of working together toward our common goal. We’re excited to be joining forces with this community of innovators and thought leaders to create meaningful change.”

Amazon’s dedication to creating an environmentally responsible business for our customers and the planet is evident in our active involvement in The Climate Pledge. Launched in 2019, this pledge commits us to achieving net zero carbon emissions across our operations by 2040, a decade ahead of the Paris Agreement. Our $2 billion Climate Pledge Fund, which invests in companies that support our mission, has also welcomed BETA Technologies and Infinium into its portfolio. These innovative companies are focused on reducing carbon emissions in the global transportation industry, which was responsible for 7.3 billion metric tons of emissions in 2020. It is worth noting that nearly 13% of signatories to The Climate Pledge come from the transportation, aviation, and logistics sectors, indicating a strong demand for products and services that align with our goal of decarbonization in this critical sector.

The new signatory Pachama, an investee of the Climate Pledge Fund, brings quality, transparency, and scale to nature-based carbon markets. With Pachama, organizations and individuals can compensate for their emissions with confidence by supporting reforestation and forest conservation projects by measuring and monitoring carbon stored in forests over time.

In its latest report, the Intergovernmental Panel on Climate Change calls for immediate action to reduce greenhouse gas emissions, to invest in natural climate solutions, and to mitigate damage.

According to Christiana Figueres, co-founder of Global Optimism and former climate chief for the United Nations, businesses must take action in order to prevent the potential devastation outlined by recent scientific findings. The Climate Pledge, which aims to achieve net-zero emissions by 2040 or earlier, has already gained the commitment of 300 companies. However, this alone is not sufficient to bring about the necessary changes. It is imperative that all business leaders thoroughly understand the science and make swift changes in their operations without hesitation.

As part of their commitment to reach the Paris Agreement 10 years early and become net-zero carbon by 2040, Amazon and Global Optimism co-founded The Climate Pledge in 2019. There are now 312 organizations that have signed The Climate Pledge, signaling a rapid rise in the demand for carbon-reducing products and services.

Discover how all 312 signatories of The Climate Pledge are decarbonizing their businesses.

For more information on what commercial solar can do for your business .
Contact us below.

The Inflation Reduction Act Good news for Nonprofits Going Solar

Posted on 12/21/202303/10/2024 by D.Smith

The Inflation Reduction Act, was recently passed. One of the major points in this legislations is that it will make it easier for nonprofit organizations to go solar. This legislation allows nonprofit organizations to take advantage of the same solar tax credits that are available to businesses, making it more financially viable for them to switch to clean, renewable energy.

One of the main barriers that has prevented many nonprofits from going solar in the past is the upfront cost of installation. Solar panel systems can be expensive to install, and many nonprofit organizations simply don’t have the budget for it. The Solar for Nonprofits Act addresses this issue by allowing nonprofits to claim the solar investment tax credit (ITC), which can significantly reduce the cost of going solar.

The ITC allows organizations to claim a credit worth up to 26% of the cost of their solar panel system. This can make a significant difference in the affordability of going solar, and it’s a game changer for many nonprofit organizations that may have previously been unable to afford the upfront cost.

In addition to the ITC, the Inflation Reduction Act also includes other provisions that will help make it easier for nonprofits to go solar. For example, it allows organizations to claim the credit even if they don’t have a tax liability, which is a common issue for nonprofit organizations. This means that they can still claim the credit and use it to offset the cost of their solar panel system, even if they don’t owe any taxes.

Renewable energy is becoming a key priority for many lenders. To support the UN’s Sustainable Development Goals of affordable and clean energy, sustainable cities and communities, climate action and partnerships, many banks are developing specialized commercial loan products designed to encourage the use of solar energy. These loan products include loans for rooftop solar systems, loans for energy efficiency improvements, sustainably certified commercial real estate financing, and sustainably certified construction loans.

Banks focused on accelerating the transition to clean energy are best positioned to help nonprofits secure advantageous funding for their solar installations. There are specialist lenders that have the institutional knowledge and technical know-how to develop innovative funding structures with favorable rates and terms designed to help nonprofits finance these installations.

There is no doubt that the IRA coupled with financing tools that provide funding support for clean energy projects will catalyze nonprofit organizations to deploy solar energy and speed their transition to a net-zero emissions future. Going solar will offer these organizations long-term cost savings while providing the benefits of combatting climate change, creating jobs and bringing new investment into their communities.

Summing up the bottom-line benefits of the IRA, a blog post by Candace Vahlsing, associate director for climate, energy, environment, and science with the White Houses’ Office of Management and Budget, said “the Inflation Reduction Act will help ease the burden that climate change imposes on the American public, strengthen our economy, and reduce future financial risks to the Federal Government and to taxpayers.”

Overall, the Inflation Reduction Act is a major win for nonprofit organizations that are looking to switch to clean, renewable energy. It removes many of the financial barriers that have previously made it difficult for these organizations to go solar, and it makes it more financially viable for them to make the switch. As a result, we can expect to see more and more nonprofit organizations going solar in the coming years, which is great news for the environment and for the future of renewable energy.

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

Posted on 10/20/202303/10/2024 by D.Smith

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 Montana, Oregon, 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.

Solar Energy Pros and Cons

Posted on 12/15/202203/15/2024 by D.Smith

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:

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.
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.
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.
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.
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:

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.
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.
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

How does the MACRS Incentive for Commercial Solar Power Work?

Posted on 12/09/202203/10/2024 by D.Smith

In this article we will discuss how the MACRS works for commercial solar power systems in the US. We are not tax experts, and this is not intended as professional tax advice. If you plan to depreciate a business-owned solar array according to the MACRS, the best recommendation we can give is contacting a Certified Public Accountant (CPA).

Business-owned solar power systems are eligible for two nationwide incentives in the US: the Investment Tax Credit (ITC) and the Modified Accelerated Cost Recovery System (MACRS).

Thanks to the MACRS, you can write off the asset value of a solar PV system in only five years. This depreciation counts as a tax deductible expense, and the cash flow of your solar investment improves.

You can combine the ITC and MACRS, but you must subtract half of the ITC from the solar asset value. For example, if your solar installation gets the 26% tax credit available in 2022, you can depreciate 87% of its value over five years (after subtracting 13%).

The Tax Cuts and Jobs Act of 2017 (TCJA) provides a 100% depreciation bonus for solar power systems placed in service before 2023. Businesses have a major incentive to go solar before the end of 2022, since the federal tax credit also drops from 26% to 22%.

If you’re considering solar power for a commercial or industrial building, you have most likely heard about the Investment Tax Credit (ITC). Thanks to the ITC, you can claim 26% of your solar PV system costs as a federal tax credit on your next declaration. Being a federal incentive, the ITC is available for solar panel systems everywhere in the US.

The ITC can be claimed for residential and commercial solar power systems, but there is an additional incentive for companies: the Modified Accelerated Cost Recovery System (MACRS). Businesses can write off (depreciate) their solar power investments in only five years under the MACRS, even when solar panels and other system components have a much longer service life. This accelerated depreciation is a tax-deductible expense, which improves cash flow during the first five years after going solar.

Which Solar Power Systems Qualify for the MACRS?

The Modified Accelerated Cost Recovery System is a business incentive, which means it doesn’t apply for residential solar systems. The MACRS is available for the commercial, industrial and agricultural sectors, and several energy sources and technologies qualify for the benefit:

Solar Photovoltaic
Solar Water Heat
Solar Space Heat
Geothermal Electric
Solar Thermal Electric
Solar Thermal Process Heat
Wind Power
Biomass
Geothermal Heat Pumps
Municipal Solid Waste
Combined Heat & Power
Fuel Cells using Non-Renewable Fuels
Landfill Gas
Tidal Power
Wave Power
Ocean Thermal
Geothermal Direct-Use
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Microturbines

Solar panel systems and some other renewable technologies are classified as five-year properties under the MACRS, which means their cost can be written off within that time frame. This improves the cash flow projection for renewable energy systems, since accelerated depreciation counts as tax-deductible expense.

Eligible systems placed in service before January 1, 2023, get an even greater benefit: 100% bonus depreciation under the Tax Cuts and Jobs Act of 2018. Solar panels can be installed relatively quickly, compared with other types of renewable generation equipment. If you’re considering solar panels for a commercial or industrial building, you can claim this benefit by acting fast and completing the project before the end of 2022. Your solar installation will also benefit from the federal tax credit before it drops from 26% to 22%.

Can a Company Combine the Solar Federal Tax Credit and MACRS?

The 26% federal tax credit is a nationwide incentive for solar power systems in all market segments. On the other hand, the MACRS is exclusively for projects in the commercial, industrial and agricultural sectors. A commercial solar installation can benefit from both incentives, but there are certain rules you must follow.

Since you get 26% of your solar investment back within a year, the IRS has decided to limit the maximum asset value you can depreciate under the MACRS. In the case of solar power, the asset value you can write off (depreciable basis) is equivalent to its total value minus 50% of the federal tax credit. The ITC will be gradually reduced in 2023 and 2024, which means the depreciable basis under the MACRS will actually increase. The following table summarizes how this works:

Considering a commercial solar system with a project cost of $1,000,000, these percentages would result in the following dollar values:

The MACRS has been available since 1986, and it has been a key incentive for renewable energy investments along with the federal tax credit. Depending on the type of asset, the depreciation period under the MACRS ranges from three to 50 years. Renewable energy systems normally qualify for five-year or seven-year depreciation, depending on the specific technology used in the project.

Tag: solar innovation