Welcome
Welcome to the April 2009 issue of The Solar Standard. This is just one way we try to stay connected with solar advocates throughout the Mid-Atlantic region. This special “Earth Day” edition is packed with numerous county and state policy developments that serve as evidence that solar is making significant strides toward becoming a mainstream energy solution.
In this issue we’re also launching two new regular features. One is to profile the people who make Standard Solar run. The other is a short primer on a topic that can help raise your solar IQ.
Should you want to share any relevant developments for upcoming issues or provide any comments, please email them to jim.pierobon@standardsolar.com.
Thank you for your time. Wherever you may be, we hope your Earth Day is filled with lots of warm sunshine!
Cordially,
Jim Pierobon
Chief Marketing Officer
In This Issue
Updated Maryland Solar Grant Dollar Amounts Ready for Adoption
The dollar amounts for grants issued by the Maryland Energy Administration (MEA) for qualifying solar electric systems have been posted and the program is poised to serve a greater number of homeowners in the state. The MEA is expected to publish new rules and a new scale for incentives by July if not beforehand.
The scale of grants is to retain the maximum grant amount at $10,000 per household from Fiscal Year 2009 (ending June 30, 2009). What is expected to change for Maryland homeowners and businesses who earned a place on the State’s wait list after November 30, 2008 is the amount of the grant per kilowatt (kW) of installed generating capacity. (One kilowatt equals 1,000 watts.)
Based on the latest information available and what is posted on MEA’s web site, the scale would break down this way:
- First 4 kilowatts $1,250 per kilowatt $5,000
- 4 – 8 kilowatts $1,000 per kilowatt $4,000
- 8 – 10 kilowatts $ 500 per kilowatt $1,000
This grant scale has been set to complement the new and compelling Federal Investment Tax Credit (ITC) which earns solar buyers a tax credit (not a deduction) equal to 30% of the full installed system cost with no limit on the dollar amount.
Examples of Typical Systems and the Federal and Incentives They Can Earn in Maryland
(There are different state incentives in Washington, DC and Delaware. Certain counties in Maryland also offer property tax credits of up to $5,000.)
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System Size
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Approx. Costs
for Illustrative Purposes Only
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Maryland
Solar Grant
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Federal ITC*
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% Paid Back From These Two Incentives
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3.15 kilowatts
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$30,000
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$ 3,900
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$ 9,000
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$12,900 / 43%
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5.40 kilowatts
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$50,000
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$ 6,150
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$15,000
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$21,150 / 43%
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7.20 kilowatts
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$66,000
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$ 7,950
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$19,800
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$27,750 / 42%
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* This credit may be deemed taxable income by Maryland and other states. Consult a tax advisor to determine what impact, if any, it could have on your tax obligations and withholdings.
Applications are being reviewed and placed in order on a new waitlist for Fiscal Year 2010 which begins July 1, 2009. The sooner you get on the wait list, the faster you can receive the grant you qualify for. Other rules may apply when they are finalized.
If you want to comment on these incentives, you can do so by sending an email to: meainfo@energy.state.md.us or calling 1-800-72ENERGY.
The wait list to be funded out of Fiscal Year 2009, which ends June 30, 2009 can be found here: http://www.energy.state.md.us/documents/SolarGrantWaitlist22309.pdf
The wait list to be funded out of Fiscal Year 2010, which begins July 1, 2009, can be found here:
http://www.energy.state.md.us/documents/FY10Waitlist3_20_09.pdf
For a similar breakdown in Washington, DC, go to our dedicated web page at:
http://www.standardsolar.com/dc
Virginia Homebuilder Floats Concept of a Zero-Energy Home, Equipped with Solar Of Course
K. Hovnanian Homes of showcased a “Concept Home” in Woodbridge, Virginia last week complete with a small solar array of photovoltaic panels on its roof from Standard Solar.
The U.S. Department of Energy’s “Building America” program is actively pursuing “zero-energy homes” and DOE’s Samuel Taylor chimed in help draw attention to the concept which is catching on in some parts of the country. Hovnanian Homes’ Matt Pellerito said he and his colleagues are looking for valuable feedback in a state that has not been ‘friendly’ to solar energy generally.
If you’re interested in the neighborhood (16104 Raptor Court, Woodbridge, VA 22191), look them up in the Eagles Pointe development.
What exactly is a ‘zero-energy home’? In short, it entails these seven steps, courtesy of the National Association Home Builders’ Research Center:
- Decrease the energy requirements for space heating, cooling and water heating
- Increase the efficiency of the furnace (or heat pump), and air conditioner
- Install a solar hot water pre-heat system, an efficient backup water heater and an efficient distribution system
- Install efficient lighting fixtures
- Install efficient appliances
- Install a properly sized photovoltaic (PV) system, and
- Turn off lights, appliances and computers when not in use
Read more about the Building America program at: http://www1.eere.energy.gov/buildings/building_america/about.html
Our Solar 101 Lesson of the Month:
Get Smart Fast on Solar Renewable Energy Credits, aka SRECs
One of the many benefits of investing in a solar electric system is the right to sell a credit for every 1,000 kilowatt hours of electricity generated by your solar electric system each year. These are called Solar Renewable Energy Credits, or “SRECs.”
A typical home solar electric system of, say, 5 kilowatts (kW) generates about 6,000 kilowatt hours – which is equal to 6 megawatt hours – of electricity per year in the Mid-Atlantic region. Those 6 megawatt hours earn 6 SRECs which currently can be sold for about $1,600 each year in Maryland and roughly $2,000 in Washington, DC.
SRECs are normally set to be highest in value in the early years of a state’s renewable electricity requirement. But because lawmakers in DC have fixed the basis for SRECs – called the Alternateive Compliance Payment, or ACP – for 10 years, the money to be made by selling one’s SRECs is expected to remain between very close to 65% of the ACP. In Maryland and other states, the ACP – and thus the value of SRECs – are higher in the earlier years to motivate solar investments sooner rather than later.
For your SRECs to be counted and sold in DC and Maryland, you need to register your solar electric system with the:
1) Public Service Commission; and
2) Generation Attribute Tracking System, or GATS, at PJM Interconnection, which coordinates the transmission of power throughout the Mid-Atlantic region.
Learn how SRECs are computed and get information about how they work in Maryland and Washington, DC here, respectively:
Homeowners in Maryland’s Frederick and Washington Counties Soon May Have Option of Ground-Based Solar Systems
The Washington County Planning Commission and the Frederick County Planning Commission in Maryland have submitted recommendations to authorize and/or loosen restrictions for ground-based, pole-mounted arrays of solar panels on land zoned residential. If passed, homeowners will not have to rely solely on their rooftops for solar arrays and they’ll generally have more leeway on rooftop installations.
Under new ordinances taking shape in each county and subject to the final approval by their County Board of Commissioners, homeowners would – within certain boundaries – be permitted to construct a solar electric system generally in their side lots or back yards. For homes without a lot of roof space facing due south, this provision could be a boon to their ability to control their electricity costs in the face of rate increases by Allegheny Power.
The counties are expected to adopt their respective ordinances within the next several weeks. Call Standard Solar if you have any questions. This coming Tuesday night, April 21, there will be a special focus on the proposed zoning text amendment at a meeting of “OurCommonWealth” at the C. Burr ARTZ Library from 7:00 pm until 8:30 pm at 110 East Patrick Avenue in Frederick City. The event is free and held in the public meeting hall, which is accessible. There is ample public parking in the ramp next door. Presentations, including one from Standard Solar on ground-mounted systems and solar renewable energy credits, will include a discussion of the key elements of the zoning text amendment to the County’s Comprehensive Plan.
The draft ordinance in Frederick County can be found here:
http://www.co.frederick.md.us/documents/Planning%20Commission/03-25-09%20Staff%20Reports/WIND_SOLAR_ZT_09_02_StfRpt.PDF
The staff report on the draft ordinance in Washington County can be found here: http://www.washco-md.net/washco_2/planning/rezone_minutes/090413_RZ-09-004.pdf
Finance Clean Energy Home Improvements in Maryland On Your Property Tax Bills? Annapolis and Montgomery County Jump In
“Clean Energy Loan Program” legislation that worked its way through the Maryland General Assembly this winter and spring under the leadership of Delegate Sue Hecht, R-Frederick, is set to become law after passage by the State Senate and House of Delegates. As Gov. Martin O’Malley moves to sign the legislation into law, Annapolis and Montgomery County are preparing programs to put it into practice.
HB 1567 passed with amendments offered by the Maryland-District of Columbia-Virginia Chapter of the Solar Energy Industries Association, to which Standard Solar belongs and supports, that effectively encourage communities to create financing mechanisms to pay for clean energy improvements through special property tax assessments.
Similar programs have been working smoothly in Sanoma, California and Babylon, New York. based largely on two principal tenets: First, the homeowner gets 15-year very low-cost financing.. And second, the assessment conveys with the home when it is sold, as a lien on the property. This way, homeowners unwilling to improve their homes because they might move soon, now should do so because the repayment obligation conveys to the new owner.
The Montgomery County Council pounced on the idea at their first meeting after the General Assembly finished its work for the year on Monday and passed its “Home Energy Loan Program,” or HELP. The program would provide no-interest or low-interest loans to cover the cost of conducting home energy audits and the implementation of cost-effective improvement projects, which under some circumstances could include solar panel systems. Supporters said homeowners could reduce their utility costs by an amount greater than the cost of repaying the loan. Annapolis is busy on its “EZ (Energy Zone) Program.” There private banks are being lined up to lend the county money at a low rate.
Watch for other counties and municipalities to follow in their footsteps, perhaps with help from U.S. Rep. Chris Van Hollen (D-Md.) who has introduced a closely-related Federal bill that would allow local governments to offer no-interest loans to more than 1 million households.
Montgomery Council member Roger Berliner (D-Potomac-Bethesda), an energy lawyer and the bill's lead sponsor, said it "will help our homeowners reduce their skyrocketing utility bills and their carbon footprint at the same time, while putting people to work in the new green economy."
How the program is to be funded remains to be determined. Stan Edwards, the environmental policy chief for the county’s Department of Environmental Protection, said it is assessing various financing models. He said he expects draft rules to be circulated by early Fall, if not beforehand.
Anne Arundel County Property Tax Credit Now Includes Solar Electric Systems
Anne Arundel County offers a one-time credit from county property taxes on residential dwellings for solar electricity generation, among other things. Initially, photovoltaic (PV) systems were not eligible but were added by legislation enacted in January (County Bill 81-08).
Careful on the fine print here. The one-time credit is:
- Calculated as the lesser of:
- 50% of the cost of materials and installation of the solar electric system, less the amount of federal and state incentives; or
- $2,500
- The tax credit is capped at the building portion of the property tax bill, not the building and land value combined.
- Applications must be filed on or before June 1 of the year immediately preceding the year for which the credit is sought.
Go here for more information: http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=MD26F&state=MD&CurrentPageID=1&RE=1&EE=1
Meet the People Who Make Standard Solar Run:
This Month, It’s Andrew Truitt, Director of Residential Construction
Andrew Truitt, Standard Solar's Director of Residential Instruction
We’re starting a new feature this month to help our readers get to know us better. We’ll begin by showcasing a recent question-and-answer session with our friends at the National Association of Board Certified Energy Practitioners, courtesy of Jane Pulaski, Editor of NABCEP News.
NABCEP: Say you’ve gotten your BS in Physics with an anthropology minor at UC/Santa Cruz, and your senior thesis was something like ‘b (quark) → u vs. b → c transitions at the Z boson resonance energy.’ After that, you decide to go for a Master of Science in renewable energy systems technology at Loughborough University in the UK where you defended a comparison of US and UK standards for energy efficiency in buildings. Then you volunteer for a non-profit in San Francisco called Grid Alternatives that installs PV systems on Habitat for Humanity homes, and tutor adult students in math and science for their GED or associates degree. Makes perfect sense that you might find yourself in the solar business, right?
Meet Andrew Truitt, Director of Residential Construction for Standard Solar in the Washington, D.C. metro area where he manages a crew of ten installers, schedules and oversees all residential jobs, and interfaces with customers, inspectors and utility officials. “Yeah, I’m busy,” he demurs, “but I love my work!”
I met Andrew in San Diego last October at the NABCEP Board meeting. We chatted briefly over lunch, but I knew then I wanted more time to learn about his work. Recently, I caught up with him. Here’s our conversation:
NABCEP: Andrew, your resume is remarkable. From quarks to the UK to math and science tutor…
Truitt: While I was driving a taxi cab in Santa Cruz, CA in 2002, a friend started working at a company called Eco-Energies over in Sunnyvale. After talking to him about solar, I decided I wanted to work in the industry so I started looking at masters degree programs in solar. After looking into the offerings state-side, I decided to pursue a Masters of Science in Renewable Energy Systems Technology from Loughborough University in the U.K.. The program explored solar, wind, biomass and hydro-power; mostly focusing on the underlying physics of the technologies.
After graduating, I became an installer at Sun, Light and Power in Berkeley, CA in October 2004, which is where I met my wife who was in sales at the company. After spending a year at SLP and a year bouncing around the Bay Area, we moved to Washington D.C. where I started at Standard Solar in August 2006. Incidentally, my wife, Sarah, now works for Sentech Inc. as a contractor to the Department of Energy focusing on the Solar America Cities program. Yes, the shop talk at home is abundant.
NABCEP: I was just going to ask about conversation around the supper table. When did you become NABCEP-certified, and are other Standard Solar installers certified?
Truitt: I was certified in March of 2007. Lee Bristol, our Chief Technology Officer, was also NABCEP-certified for PV installation at that exam. All four of our crew leaders will be sitting for either the March or September certification exams. If the Entry Level certification exam were available locally or on-line we would have all of our installers certified to at least that level.
NABCEP: So you and Standard Solar feel strongly that NABCEP certification has value to your work?
Truitt: For me, NABCEP is a vital tool for 3 reasons:
- The NABCEP certification shows customers that we are not new to PV. It’s becoming increasingly recognized as the standard in solar certification for everyone from 2kW residential customers to megawatt-level commercial behemoths;
- The continuing education requirement motivates me to keep attending trainings to learn new skills and stay current with my existing knowledge; and
- The process of studying for the exam helped me to fill in any gaps in my knowledge and confirm the most up to date best practices of PV system installation.
Our solar mission is to perform 30-year, no leak installations that blend aesthetically with the system environment with an emphasis on safety, power production and customer service, and I think that NABCEP reflects and helps us to achieve those goals.
NABCEP: I’m guessing you’re enormously busy, but I’m wondering if the economic downturn has had an impact on your work.
Truitt: We are extremely busy. The increase in the Maryland grant program this summer really jump started our business. When the cap was removed from the 30% federal tax credit at the end of last year, that also helped and now the latest incarnation of the D.C. grant program is getting underway. We have also been fortunate enough to have attracted some significant investment which has allowed us to develop a marketing department and even an actual advertising campaign.
NABCEP: As busy as you are, you must have encountered some hurdles along the way.
Truitt: Coming to the Metro D.C. area I had to spend a lot of time and energy educating permitting officials, inspectors and utilities about how solar works and what things to look for in a high quality PV installation. That can be a double-edge sword: on the one hand, it’s an opportunity to set a standard for installations that complies with current best practices, but at the same time some officials unfamiliar with a new technology can be rather obstinate about their views, even when presented with strong contradictory evidence. That being said, we have had great success working with the local utilities and AHJs and feel that everyone is starting to operate on the same page.
NABCEP: Has the outreach been worth the effort? Do you have more support today than when you started?
Truitt: Absolutely. Everyone is getting excited about solar these days. One needs look no further than the last election for proof that once-progressive ideas like renewable energy are now main-stream. We still regularly get building or electrical inspectors that have never heard the word “photovoltaic” when they arrive at the job site but leave saying “I need that on my house!” The key is establishing a reputation as a firm that meets or exceeds the code in all facets of the installation and handles business in a professional manner. If you perform well the powers that be go out of their way to support you!
NABCEP: What’s surprised you about your work?
Truitt: Installing in the snow threw me for a bit of a loop.
NABCEP: In the snow? Were you on a steeply-pitched roof?
Truitt: Flat roof with 4' parapet walls, ballasted system, and extreme care taken to keep all electrical connections dry. I did mention I’m NABCEP certified, right?
NABCEP: Sounds like you know your safety rules. So what’s on the horizon for you?
Truitt: I’m really excited to be at Standard Solar. When I started, we were a company of six and now we’re over 50 and growing. I hope to stay here for at least a few more years and help us become the premier installer of the Mid-Atlantic region. By that time the “wintry mix” that we tend to get between November and March might be getting a little old - after all, if I’ve learned anything in this field its that a sunny day is never a bad thing!
25% by 2020: Maryland Governor O’Malley Expected To Sign Greenhouse Gas Reduction Mandate
Maryland Governor Martin O'Malley is expected to sign legislation into law aimed at reducing the state's greenhouse gas emissions.
Maryland is set to be one of eight states seeking to reduce greenhouse gas emissions within its boundaries by a certain percentage within a stated time frame. Governor Martin O’Malley is expected to sign into a law a mandate to reduce the gases associated with “global warming” 25% by 2020.
Progress in the General Assembly comes after previous attempts by O’Malley failed. This time around, it took a compromise among organizations from industry, labor and environmental activists that exempts the entire manufacturing sector.
Because most greenhouse gas emissions come from the generation of electricity and transportation sources, the impact most climate experts will be watching for is the affect the soon-to-be-law will have on coal-fired electric generating plants, including those owned by suppliers selling electricity into the state. While just about any such legislation is likely to put upward pressure on electricity prices, it underscores the benefits of powering homes, businesses, government buildings and educational institutions with solar energy systems. If anything, it helps electricity users better manage these rising costs.
The legislation does not determine how the greenhouse gases are to be reduced. The state’s Department of the Environment is to develop a plan for doing so by 2012. Any plan would have to yield an economic benefit to the state and not disrupt “affordable and reliable” electricity service.
According to the National Council of State Legislatures, seven other states have passed similar legislation. You can find a copy of the legislation as passed by the House of Delegates and the State Senate (SB 278) here: http://mlis.state.md.us/2009rs/bills/sb/sb0278t.pdf.
Maryland’s New Clean Energy Center in Rockville Awaits Naming of Its Executive Director
Montgomery County Executive Isiah Leggett applauds the opening of the new Maryland Clean Energy Center by Maryland Governor Martin O'Malley (at podium) at the Universities at Shady Grove complex in Rockville.
Who is to run Maryland’s new Clean Energy Center is one of the oft-asked questions circulating in energy and environmental circles this month after Gov. Martin O’Malley officially opened the Center for business March 31 at the campus complex that makes up the Universities at Shady Grove, about five miles from Standard Solar’s Gaithersburg, Maryland headquarters.
The Universities at Shady Grove in Rockville prevailed in a spirited competition to host the Center as the O’Malley Administration, the Maryland Energy Administration and the Department of the Environment sharpen their focus on more sustainable energy and environment initiatives and the job engines they can become.
Standing in front of a pair of Suntech and SunPower panels supplied by Standard Solar in the courtyard in front of the University of Maryland’s Camille Kendall Academic Center, O’Malley said the center marks a large step toward creating 100,000 “green collar” jobs by 2015.
The Center is to include space and resources at the City of Annapolis’ 500-acre National Clean Energy Park and facilities at the Frederick (County) Technology Center business incubator at Hood College there.
Working with a startup budget of $600,000, the Center will have the use of five offices, rent-free, along with access to the university’s classrooms, conference rooms, computer labs and library.
“We feel that’s an investment in the clean tech industry,” Eric Coffman, Montgomery County’s senior energy planner, told the Washington Business Journal. “Now is the time to invest in solutions for our tough times, and this is one of those solutions.”
Program priorities for the center range from technology commercialization and business incubation to workforce development and training. The ready-to-open center expects to have five people on staff, and will tap student interns and volunteers from The Universities at Shady Grove to also work there.
The Maryland General Assembly set the stage for Clean Energy Center through legislation passed during the 2008 session. The center has nine-person board, which still must hire the center’s executive director. Ken Connolly, a Goldman Sachs & Co. vice president from Chevy Chase, serves as the Clean Energy Center board chairman.
Read more about the Center at: http://www.marylandcleanenergycenter.org/.
Standard Solar Supports BethesdaGreen.org
Standard Solar is a proud sponsor of the Bethesda Green non-profit organization which is working to sustain the current and future development of the Washington, DC suburb of Bethesda, Maryland by promoting renewable energy and other sustainable products and services while fostering a community-wide environmental ethic.
Beginning with this year’s Earth Day, at their headquarters you will find a real solar panel from Standard Solar surrounded by helpful literature about the company, as well as, Federal, Maryland and Montgomery County incentives to invest in solar systems for homes and businesses. They are located at 4825 Cordell Ave., Suite 200, Bethesda, MD 20814
Look for events organized by and located at their headquarters, including future solar seminars, in the months to come. And kudos to founder and solar advocate Dave Feldman for all that he is accomplishing with www.BethesdaGreen.org !
Want To Help Set a “World Record’ for ‘Most Green Drinkers’ At the Same Time?
If so, here’s your chance. This Wednesday, April 22 – Earth Day of course – the Chesapeake Bay Foundation is coordinating Green Drinks events throughout the Bay watershed to raise awareness and money to defend and clean up the Bay. And while they’re at it, they want to break what the Foundation asserts is the world attendance record of 1,800 Green Drinkers who gathered recently in Melbourne, Australia.
There are Green Drinks events in about 20 locations between Delaware, Pennsylvania, Washington, DC, Maryland and Virginia. You can find one closest to you at their web site: http://www.greendrinksforthebay.org/. Enjoy!
