solar

Offshore Wind: US Playing Catch-Up

The Best of The Financialist

As the year comes to a close, The Financialist is taking the time to revisit some of the most popular and interesting stories of the past year. Here are our  picks for the top 10 stories of 2012.

Solar is Close to Going Mainstream

A slew of new solar-powered electricity projects have come online in the past two years, and the sheer volume has solar power nearing price-parity with carbon-based generation in some markets.

Read the whole story here.

India’s Model T Moment

For decades the iconic Hindustan Ambassador – in production with few changes since 1958– defined India’s automobile sector. Yet today sales of the beloved “Amby” have fallen to an all-time low of 2,506 per year. The iconic Indian car of recent years has been Tata Motors’ tiny egg-shaped Nano, originally dubbed the “one-lakh car” because of its pre-launch offer price of INR100,000 (US$2,100). And it is the Nano which appears to show the shape of things to come for Indian cars.

Read the whole story here. 

Commentary: Europe’s Lost Generation

Youth unemployment is a dispiriting problem for European countries, especially  Spain and France, which were already wrestling with the issue before the global financial crisis.

Read the whole story here.

U.S. Oil Output to Overtake Saudi Arabia?

The International Energy Agency expects the US to become a net oil exporter by 2030, but Credit Suisse Global Head of Energy Research Jan Stuart says that prediction may be too optimistic.

Read the full interview here and here 

Commentary: The Upside of the Euro Crisis 

European Union leaders’ inability to agree on a long-term spending plan last week shouldn’t overshadow the real progress they have made recently in turning the EU into a more cohesive and viable monetary union.

Read the whole story here.

Italy’s New Philanthropists

Last year Diego Della Valle, president and chief executive of family-controlled shoe and bag maker Tod’s, pledged €25 million ($32 million) to restore the columns of the world’s most famous amphitheater — Rome’s Colosseum.

Read the whole story here.

Asia’s Falling Angels and Rising Stars

A quick glance at China and India reveals that investors’ bearish outlooks on Asia’s two most populous economies are driven by fundamental structural concerns.

Read the whole story here.

Fresh: Supplying Farm-to-Table Restaurants 

During New York City’s fifth annual Wine and Food Festival, The Financialist looked at the challenges facing farm-to-table restaurants, which have to ensure their fruits, vegetables, and meats are sourced directly from the farm.

Read the whole story here.

Commentary: Why the Future of American High Tech Remains Bright

Despite recent market jitters, economist Enrico Moretti believes the long-term prospects of the U.S. tech sector are bright.

Read the whole story here.

Geek Convergence: Financial Modeling is…Fun?

Financial modeling and fun don’t always go together, but new games and competitions rooted in valuation and accounting principles are bringing out the lighter side of serious business.

Read the whole story here.

The Largely Positive State of Global Solar

While the solar industry is going through something of a rough patch in the United States, the sun still shines in other parts of the world – a strong indication that better days are ahead for this vital source of clean power.

Germany and China, in particular, remain deeply committed to photovoltaic (PV) power.  Germany is proceeding with an ambitious scheme to move energy production from fossil fuels and nuclear fission to renewable resources like solar and wind power.  Not surprisingly, the plan is buttressed by hefty government incentives: Citizens who power their homes with rooftop PV panels can market their surplus output to the national grid at generously subsidized prices.  Solar panel arrays are now ubiquitous in German residential areas and commercial centers alike.  Today the country gets a substantial 20% of its electricity from solar, wind and other renewable resources.

Germany’s Solar Boom

In its latest sector review, Solar Snippet, Credit Suisse estimates that, by the end of the year, driven by strong overseas demand, worldwide PV module installs will total 27 gigawatts, an 8% increase year on year. Overall, Credit Suisse expects solar capacity will increase by 39.2 gigawatts in 2012, up 46% from 2011.

Many of the solar panels fueling that growth are manufactured in China, which in a relatively short time has become the world’s biggest producer of solar panels.  The United States alone bought $3.1 billion of bargain-priced Chinese-made PV panels last year, half the US total. China’s low cost PVs motivated a stiff antidumping tariff from the Commerce Department in May – angering both Chinese manufacturers and American solar system installers, who maintain the move will drive up the costs of solar power in the US.

But China isn’t only exporting its solar panels – it’s also absorbing a great number of them internally.  This year the country appears on track to install enough photovoltaic panels in 2012 to produce electricity to power several million homes.

Of course, that’s not to say that it is all blue skies for solar energy. In the US, the abundance of natural gas is exerting a dampening effect on renewable energy.

“When natural gas was at $6 per million Btu, it looked like solar was getting pretty competitive,” says Severin Borenstein, the E.T. Grether Professor of Business Administration and Public Policy at the University of California’s Haas School of Business and the co-director of the Haas Energy Institute.

That was especially the case for mid-scale arrays, generating around 20 megawatts of power and large-scale projects, continues Borenstein.

“Then with the fracking boom, the price of gas tanked to around $2.  Now it’s up to maybe $3, but I don’t see it getting pricey for a long, long time.”

As long as natural gas is plentiful and cheap, Borenstein observes, utilities will prefer it over solar, regardless of the latter’s superior clean and green credentials.  The infrastructure already exists for gas distribution, and the cost of gas-generated electricity is cheaper than solar power—despite the fact that the average price of Chinese PVs has dropped by 75% since 2010.

Green Subsidies:  A Key to Success 

Still, solar can’t be counted out in the United States, insists Jigar Shah, a founder of the solar company SunEdison and a partner in Inherjys, a $1 billion clean tech fund based in Montreal.

“Yes, solar is facing challenges, particularly in the (PV panel) manufacturing side where there’s not much profit,” says Shah. “You hear a lot of dire pronouncements, but out there in real world people are installing solar panels faster than ever.”

Incentives are helping to maintain interest in solar developments, Shah acknowledges. “The 30% (Federal Renewable Tax Credit) has been extended to 2016, and there’s a whole array of incentives in states with renewable energy portfolios. They’ve made a real difference.”

Such incentives for solar have been much maligned, and are often used to support the argument that the sector can’t make it on its own. Still, government support for energy isn’t new; it’s an integral part of the process of bringing new sources and new technologies to the marketplace.  Moreover, US incentives for renewable energy are far outstripped by subsidies for fossil fuels.  According to the Environmental Law Institute, renewable energy received slightly more than $12 billion in government disbursements and tax credits between 2002 and 2008. Oil, gas, and coal producers received $70 billion in direct support and tax considerations over the same period.

Organic PV Ready For Consumer Electronics?

New breakthroughs in solar photovoltaic technology could make low-cost solar cells available in an array of consumer electronic equipment. So says Molecular Solar, a company spun from the University of Warwick, after demonstrating a record voltage for organic photovoltaic (OPV) cells.

Researchers from the company have, for the first time, created cells with open-circuit voltages in excess of 4 volts. What that means is the highly flexible, low-cost solar cells can now be devolved for commercial uses like electronics that we use everyday, the company said.

image via Warwick University

Organic photovoltaic solar cells use semiconducting plastics instead of the traditional silicon-based cells to produce thin-film solar delivery systems. Earlier this year, many of these same Warwick-connected researchers reported advances in using gold as an alternative to indium tin oxide in coating organic solar cells.

The company’s director of research, Ross Hatton, called the Molecular Solar breakthrough “an important advance.” Organic photovoltaic cells can now provide the electrical energy, in the volts necessary, for recharging lithium ion batteries commonly used in portable consumer electronics, he said.

And it will now be cost-effective to do so.  The advantage of the newly discovered  high voltage cells is  a single cell can be used with no requirement to connect multiple cells in series for these applications, saving manufacturing cost, the company said. Molecular Solar is currently completing a £5 million ($8 million) investment round that will fund the up-scaling of their OPV technology.

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Can ‘Green’ Companies Stay Out of the Red?

With the failure of green energy poster child Solyndra – after the California-based company that received a $528 million taxpayer investment — the question being asked in many circles is whether the green industry is a smart investment for either the public or private sector.

Scottsdale-based reNature, which recently received a grant from Arizona State University’s Edson Entrepreneurship Initiative, believes its venture and green industry as a whole is a worthy investment for multiple reasons. reNature has a founding team made up of seven Arizona State University students who are studying in a wide variety of disciplines. They came together based on common interests of sustainability and business and applied fore the Edson Student Entrepreneur Initiative in April. They were accepted into the initiative and subsequently given a grant, office space for one year in the SkySong building in Scottsdale, and mentoring from the initiative and from members of the community that are connected to the university. Like many in the “green industry” CEO David Metoyer, a finance and sustainability major, and his team at reNature want to take something traditionally seen as a liability – like trash – and through natural processes turn it into an asset. “We want to work with nature’s systems and add value to something that is usually worthless,” said Metoyer. “We want to commercialize nature.”

In recent years there have been numerous companies that have had a similar creed to that of reNature. However, like Solyndra, a large number of them have not been able to make it through the hurdles that every start-up business faces. At a hearing last week, Jonathan Silver, director of the Department of Energy’s energy loan office, said that factors such as China flooding the market with cheap solar panels and a tough European buying market have caused solar-cell prices to drop sharply, significantly hurting companies such as Solyndra. The loan office has given $35.9 billion dollars in loans and created 64,776 jobs according to its website. When Solyndra filed for bankruptcy earlier this month the company was forced to lay off more than 1,000 employees.

So, the question that remains to be answered is, how can green companies stay out of the red? Metoyer and his team at reNature believe that they have a green model that is truly sustainable: economically and environmentally. First of all, reNature is “going for the low-hanging fruits now,” Metoyer said. In other words, the venture is entering the industry carefully, fully aware that there are some “green” business models that can survive now, and some that cannot, said Metoyer. “We need to make sure that any new green company makes business sense,” said Will Heasley, director of business development for reNature. “It has to be economically viable – you have to find a method that makes sense financially,” said Metoyer. “This type of cautious entry into the market is something that other companies should mimic,” he continued. He believes that the American consumer may not be ready for all of the green products that are being introduced. “They (consumers) say, ‘as much as I want to be environmentally conscious, I have to make sure I have enough money to simply keep living,’” said Metoyer. And as for companies that “go green” as a way to look good in the public eye, Metoyer says, “It has to be more than doing something green to get good press – It has to be more than PR.” Another question that green ventures need to ask themselves is “the technology may exist, but does it exist at the right scale?” said Metoyer. “Many times the answer is no, it doesn’t.” The failure of Solyndra and other companies like it shows that even with massive help from the federal government, being green does not guarantee profitability. Nevertheless, many believe there is a market for clean and sustainable industry, but like any other market it’s one that must be entered cautiously, said Metoyer. “Every new company has to look at the triple bottom line,” said Metoyer. “What effects will it have economically, socially, and environmentally.”

Sources
David Metoyer: 425-765-8489
Will Heasley: 602-518-8912
Jonathan Silver: https://lpo.energy.gov/?page_id=19

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Saving Money With Solar Energy

If you have been concerned about the rising energy costs in your area, it might be a good time to look at ways in which you can save money with solar energy. Various areas in the world run on different power sources, which most of these sources being problematic in some way. The main problem is that even energy sources that are renewable use some sort of oil power to maintain them. This automatically increases the costs associated with the energy source, which is then passed onto the consumer. The vast majority of people are prepared to pay whatever the oil companies see fit, but you do not have to be one of these people if you are able to harness the money saving power of solar energy.

Durability

One of the most common ways in which people use solar energy is through solar panels. While these panels are somewhat expensive to install, they save you money over the years because of their durability. When you purchase a panel, it can provide you with energy for about 30 years. There are no other sources of energy that can come close to matching that level of durability. In addition, since it is at a one-time cost, you will be supplied with free green energy for many of these years after your original purchase. If you are a homeowner, having free energy coming into your home really adds up in a short period of time.

Power Levels

Another way in which solar power saves you money is by creating an unlimited amount of power for you. If you are running on gas power, you can use as much energy as the gas company will provide for you. Eventually, the planet will run out of fossil fuels and the gas company will no longer be able to provide you with this energy. As these levels get lower, oil companies will charge an even higher premium, which will cost you even more money. Solar power, however, is infinite because it comes directly from the sun. Since no one owns the sun, you can never be charged for harnessing as much of this power as you wants.

Taxes

While it might be a roundabout way to save money through solar energy, many locations will provide you with a tax break if you switch to solar power. It really depends on where you live, but some locations have made it very lucrative to switch over to alternative energy sources. In Australia, for example, the federal government supplies its citizens with an $8,000 grant for spending $16,000 on solar panels. When you factor in the monthly savings on your energy bill, it really makes sense to switch under those circumstances. As solar energy options become more readily available, we will likely see other countries jump on board with similar tax benefits.

Flexible Set Up

A common gripe with solar energy is that it costs so much to get started. This, however, does not have to be the case if you are smart about it. Your entire energy system does not have to be installed at once, as you can slowly add to it over the years. If you have enough money for one solar panel right now, you can install the first one and then wait to install a second. Having that first panel up will save you a little bit of money, as it can be used to store energy for when you need it. You can probably install these panels yourself as well, which saves money if you have to do it in multiple steps, since you will not have to hire someone each time.

Storing Energy

As was mentioned before, you can store your solar energy for when you need it the most, as long as you have a capacitor. If you produce too much solar energy for your home, you can either release this energy into a pool, where others would be able to use it, or you can store it for yourself. If you store the energy, you can use it whenever you wish. This comes in particularly handy if you have a prolonged period without much sunlight, as you can continue to rely on solar power. It is also useful during a blackout, as you can keep your house powered while the rest of the neighborhood is dark. Storing energy prevents you from having to rely on gas when you are not producing enough solar energy, which saves you money each time a cloudy period hits.

Other Methods

Solar power can also help you save money in smaller ways throughout the year, as long as you are smart about it. If you use flashlights when camping, bring a solar powered version to save on the cost of batteries. You can usually find radios that run on solar power as well, saving you additional money. All you have to do is remember to put the light or radio out in the sun during the day and you can enjoy the power when it is needed.

A simple way to harness some solar power to save money is to use black sheets on your bed or black curtains on your windows. If you do this during the winter months, you will find that your bed or room is warmer when you get into bed at night. This is because these black items store solar power naturally, which can cut down on how much you have to spend on heating your home each month. With so many ways to use the power of the sun, you should be able to find a money saving method soon.

About the Author: M.H is sharing his knowledge and passion about renewable energy sources at Alternative Energy Geek.com.

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