Net metering refers to a policy in which consumers can feed electricity from renewable energy sources back to the grid for a set price and under the requirements set out in the agreement.  The word "net" in this case refers to the difference between energy coming in and going out to the grid.  When the energy fed back to the grid is sold at a higher rate we have what is called a feed-in tariff.  Gainesville, FL is currently the only municipality in Florida to offer a feed-in tariff program.

Net metering is considered an incentive for renewable energy investment. It allows the consumer to recoup additional investment beyond the savings created by full energy production at a given time. In other words if you invest in a solar energy system that at certain times of the day powers your entire house, you would normally save the money you would be spending on energy for those daylight hours when your system is producing energy.  When the sun goes down and the system is not collecting energy you go back to paying for your energy needs.

With net metering you can recoup additional money by in effect selling excess energy to the utility company during those peak daylight hours.  The result is that you will either defer much of the cost of electricity during non-daylight hours or in some cases produce enough energy to receive credits which can be applied to future bills or refunded if you leave that utility provider.

For Progress Energy customers in the Tampa Bay area net metering is available with requirements based upon the size of the renewable energy system.  For this discussion we will focus on the tier 1 (systems under 10kw) requirements because most residential and small businesses will fall under this umbrella.  Here are the requirements for a tier 1 system:

No application fee, disconnect switch or insurance requirement, simply complete the application and interconnection contract and mail to the address below:

Progress Energy will replace your current meter with a "bi-directional" meter that will be capable of recording any exported power for the purpose of calculating any credits you may be due. The meter should be replaced within 3 weeks of receipt of the completed application.

For questions, contact the Distribution-Interconnected Generation office at customer.generation.pef@pgnmail.com.  

For more information about connecting renewable sources visit Progress Energy's interconnection procedures.     

According to a research study conducted by the Clean Energy Group and SmartPower the number one barrier to market growth of solar energy is high up-front and out-of-pocket costs (The other three major barriers are reliablility, complexity and inertia).  Consumers are more likely to invest in solar power if the initial out of pocket cost is reduced or there is some type of discount or incentive for making such an investment.  In Florida the largest incentive for installing solar is available from the federal government in the form of a tax credit. 

For homeowners, the Residential Renewable Energy Tax Credit provides a 30% tax credit on the installed cost of solar photovoltaic systems. Expenditures can include labor costs for onsite preparation, assembly or original system installation, and piping or wiring to interconnect a system to the home.  If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the next taxable year.

For businesses, the Business Energy Investment Tax Credit (ITC) also provides a 30% tax credit on the installed cost of solar photovoltaic systems. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.

It is important to note the difference between a tax credit and a tax deduction.  Whereas in the past incentives for renewable energy have involved tax deductions a tax credit is much more valuable.  A tax deduction only reduces taxable income and so the reduction in tax is only a fraction of the deduction.  A tax credit on the other hand is a recognition of partial payment already made towards taxes due.  So for example, if you are completing your tax forms and determine that you owe $15,000 to the government in taxes for the current year and you installed a solar photovoltaic system at a total cost of $20,000 you can deduct $6,000(30%) from your tax liability thereby reducing the taxes due to $9,000 for the current year.  

Until recently the State of Florida provided a $4/watt rebate up to $20,000 on installed solar through the Solar Energy System Incentives Program.  However, there is no more funding for this program and the program itself is set to expire this year unless the state legislature intervenes. 

To see a complete list of federal, state and local incentives for solar energy visit the Database of State Incentives for Renewables & Efficiency. 

Akeena Solar Inc., manufacturer of the Andalay AC solar system, announced on Wednesday that it will provide residential installation services for Lowe's customers in 21 California stores.  The company announced a few months ago that they would begin selling the Andalay AC system at Lowe's as part of the Lowe's Energy Center.  This made the Andalay AC system the first grid-connected solar power system to be sold by a major retailer.

Barry Cinnamon, CEO of Akeena Solar stated "Homeowners now have the option to install a few panels on their own or use Akeena's professional installation services available through Lowe's. Lowe's and Akeena Solar give homeowners the flexibility they need to get reliable solar energy and immediately decrease their electric bills."

Lowe's launched Energy Centers in 21 California stores in December, giving homeowners a "one-stop destination to save energy and money. These centers feature products that help homeowners measure their energy use, reduce energy consumption and generate clean energy." The Energy Centers will be operational in additional U.S. and Canadian stores later this year.

Solar Global Green of Tampa Bay, Florida is now an official dealer of Andalay AC solar systems. Andalay AC is the next generation in solar power systems with award winning design and superior performance, reliability and safety.  Winner of the 2009 Popular Mechanics Breakthrough Product of the Year, the 2009 SEIA Innovator award, and winner of the 2008 International Design Excellence Awards (IDEA) Finalist Award.

Each Andalay AC panel has an Enphase microinverter built right in which is a small device that converts DC output from a single solar panel into grid-compliant AC power.  As a result of power output being managed at the panel level as opposed to one central location, Andalay AC panels perform at high conversion efficiency and greater production in low-light conditions. In fact Andalay AC solar panels perform 5-25% better than ordinary panels. 

Most solar photovoltaic systems are only as good as the weakest panel in the chain.  When one panel is not operating efficiently all of the other panels connected to it lose efficiency.  With Andalay AC there is no single point of failure so the entire system operates at maximum efficiency. Andalay AC has 80% fewer roof-assembled parts and 25% fewer roof attachment points which results in greater reliability of the product and the installation.

Andalay AC has built-in electrical connections and grounding as well as protected wiring for improved reliability and performance.  There are no unsightly external racks and wires dangling everywhere.  Andalay AC panels are sleek and black and look like skylights. 

Andalay AC systems come with an optional energy management unit and free web monitoring for 90 days.  This monitoring system allows you to view information about your system's performance from any standard web browser. 

Best of all Andalay AC systems are safer to install and maintain because there is no dangerous 600 volt DC wiring.

*photo by Andalay Solar

To learn more about Andalay AC watch the installation video below:

To learn more about the Enphase Enlighten web monitoring service watch the demonstration video below:

To learn more about Enphase microinverters watch the demonstration video below:

Once again Florida state legislators are proving that they place more importance on lobbyists than small businesses.  Despite the massive potential for solar power to create good paying green jobs and end the prolific rise of consumer energy costs the state legislature has turned a deaf ear to the concerns of businesses that can revive the state's economy and put Florida in a leadership position with regard to solar development. Florida may be the Sunshine State in name but certainly not when it comes to long term renewable energy solutions.  

Governor Charlie Crist is in the midst of riding off into the sunset.  After advocating for clean energy in his campaign and providing rhetoric in support of the solar industry Crist has done very little to advance the industry in meaningful ways.  Case in point is the $10 million he set aside for the solar rebate fund.  Almost 8,000 applications for the state rebate are now on hold which amounts to approximately $25 million in rebates.  That means that the Governors funding for solar incentives will not even provide rebates to half of those projects on the waiting list.  It is interesting to say the least that funding for solar incentives on the consumer level have all of a sudden dried up just as large enterprise level utility projects which consumers will pay for one way or the other have grown in popularity. 

For their part the state legislature is doing everything they can to cater to the big utility companies when it comes to solar legislation.  Their idea of a renewable energy economy is giveaways to utility companies on the backs of Florida consumers. Take the major legislative efforts taking place this session as an example:

Sen. Nancy Detert, R-Venice, is sponsoring a bill that requires electric companies to generate 20 percent of their power from renewable sources by 2020.  I wonder how Nancy Detert thinks that utility companies are going to pay for the cost of the investment required for this to happen?  Are utility companies just going to accept the costs of doing business or are they going to rely on their influence and lobbyists to pass these costs to the consumer as they have done continually?  My money is on the second option.

Sen. Mike Bennett, R-Bradenton has introduced an alternative renewable energy bill that would "allow electric companies to build 735 megawatts of renewable energy over the next three years, enough to power thousands of homes".  Why are the same giveaways to utility companies not being provided to consumers who want to stop paying excessive utility bills and surtaxes by investing in their own solar energy?

Thad Altman, R-Melbourne, favors legislation that "allows electric companies to tack on a renewable energy charge to customers' monthly bills. The money would go into a fund to pay for solar and other projects."  At least Thad is being up front about his desire to prop up the massive profits of utility companies on the backs of consumers.

If these developments are not enough look at how they are trying to parlay clean energy efforts into giveaways for their energy lobby friends.  Twice last year, late in the session, the House tried, unsuccessfully, to tie clean energy legislation to concessions on off-shore drilling off the coast of Florida.  Trying to tie renewable energy to off shore drilling is like trying to walk backwards while walking forward and says alot about the influence of the fossil fuel energy lobby on Florida state leaders.

Critics of the state solar rebate program say that we can't continue to subsidize consumers and small businesses in order to increase the level of investment in solar energy.  Unless these critics pay equal attention to the continued subsidization of utility companies at the expense of Florida's consumers whose wages are going down and energy costs are going up their credibility on this issue is nonexistant.  For now the State of Florida will continue to be more of an energy lobby state than a sunshine state.

EPA Administrator Lisa Jackson met with Congressional leaders yesterday and essentially backed down from any significant oversight of carbon emissions for the foreseeable future.  Coal and oil lobbyists from around the country could be heard dancing in the streets. 

According to a report by the New York Times, Lisa Jackson made clear that "no stationary sources will face greenhouse gas regulations this year and that small sources will not be subject to permitting requirements any sooner than 2016. EPA is also considering "substantially" raising the thresholds in its proposed "tailoring" rule to exempt more facilities from requirements that they minimize their greenhouse gas emissions".

This is just another example of the Obama adminstration talking out of both sides of their mouths.  You cannot go before the world like he did at the climate change summit in Copenhagen and cojole polluting countries to make sacrifices for the good of the world and then come home and make the easy decisions to save your political hide.

After initially gaining some bi-partisan support in Congress the clean energy bill has gotten lost in the pile of agenda items by this administration, a pile that is overwhelmed by health care maneuvering and deal making. This decision by the President and the EPA Administrator has just raised the stakes on climate action through Congressional legislation.  If legislation fails there will be no doubt who will be to blame for the failure to reduce emissions in this country.  More importantly all that rhetoric coming from the President during his campaign and at Copenhagen will be viewed as a farce.   

Governor Charlie Crist's budget for 2010-2011 provides 2.1 billion for Florida's environment and includes all of the 176 million in clean energy funding from the federal government in the last fiscal year.  Total funding set aside for the state solar rebate program? $10 million.  That is barely enough to satisfy all of the Floridians who have already invested in solar and are still on the waiting list for rebates. That means that the Governor's allotment of funds will do nothing to spur additional incentive for energy consumers to invest in solar energy.  
 
With this budget and a large amount of federal funding to spend, the Governor missed a golden opportunity to add some stability to what is a highly volatile solar energy market in the state of Florida.  Refunding the Solar Rebate for 1-2 years or more would have been an effective way to spur additional investment and send a clear signal that Florida is going to be a leader in solar energy.

Certainly government incentives are not a long term solution to the weakness of the Florida solar market.  What is going to sustain the market is innovation and good business practices by companies looking to build their market share.  Also, creative purchase agreements at the municipal level will go a long way toward stability.

However, in order to invest in technology and the resources needed to deliver on quality products and services solar businesses need an initial impetus for consumers to take a serious look at the benefits of solar energy investment.  Given current economic conditions Florida consumers are wary of the significant initial investment required for solar energy despite the economic benefits of doing so.

Governor Crist appears to have spread out the money from the federal government to several different programs to set a wide base for a renewable energy industry whose direction is still very much unclear.  If he is planning to augment solar incentives with additional federal funding from the clean energy bill that is being debated in Congress then this budget will have been a good start.  If this is a one time distribution of significant funding then it is simply not enough to provide any significant boost to the solar energy market in Florida. 

****Updated 12/29/2009

Some updated numbers on the Gainesville FIT program provided by Gainesville Regional Utilities:

* 563 kW have been completed through the FIT program.

* Because the FIT queue was filled so quickly another 452kW has been installed through the GRU net metering program since last March.

* In total GRU has had over 1MW of solar installed in less than a year (compared to 230kw between the entire period of 1980-2009).

On March 1, 2009, Gainesville Regional Utilities in Gainesville, Florida began the first solar feed-in tariff program in the United States patterned after  European countries such as Germany in which payment is based on “the estimated generation costs of the renewable energy system, plus a mandated rate of return on investment”.  Under the arrangement GRU customers who invest in solar PV systems can sell the electricity generated back to GRU at a fixed price of $0.32 per kilowatt hour for 20 years.  Initially hailed as a landmark decision for community solar the program has featured measurable successes along with high profile critics. 

The biggest criticism came unexpectedly from the leader of one of the largest solar industry association.  Solar Energy Industries Association (SEIA) President & CEO Rhone Resch had the following to say about the program at the PV Industry forum in May:

"You are now seeing Gainesville Florida had the first Feed-in Tariff in the country. It was poorly designed; it will probably give Feed-in Tariffs a bit of a black eye in the US. But at least it was the first."

Some of the "poor design" aspects Mr. Resch may have been talking about include no application fee to weed out speculative projects, verification of financing, no requirement for drawings of proposed projects, not requiring systems to be built on existing structures which allowed for too many speculative projects.  All of these criticisms are legitimate when consideration is given to how fast this program was able to be up and running.  However, Mr. Resch appears to suggest that the only companies qualified to take part in solar expansion in Florida are large utility companies and national corporate interests with the following statements:

"So until the bigger companies really start to take a role in this particular program and they are in the queue, but what you are going to find is the first tier of projects that have received acceptance probably won’t ever get constructed. So Gainesville after six months is going to have to say “alright fine you guys aren’t going to be able to get it done, let’s go to the second tier” and that’s where you start seeing the SunEdisons and the Conergys and those kinds of companies who will be able to actually build some of these projects."

Apparently in Mr. Resch's world small business has little place in the expansion of renewable energy programs.  The Gainesville feed-in-tariff, the first such program in North America did not go off without a hitch and so that means we don't have enough corporate control of the process.  Apparently Mr. Resch has not been paying attention to utility costs in the state of Florida.  With large utility corporations in control of the process we have seen nothing but increased costs passed on to the consumer again and again, most having nothing to do with renewable energy.  It makes you wonder if Mr. Resch and the SEIA have gotten too cozy with the large utility companies and the lobbyists that deliver their demands. 

Rhone Resch's opinions aside let's look at some of the positive developments with the Gainesville feed-in tariff. Experts believe Gainesville’s feed-in tariff program will increase local installation of solar PV systems by an average of 1000 kilowatts per year over the next 20 years. The cost?  Approximately 1% accross the board to GRU customers. Less than one month after being implemented in March, 2009 GRU had already received proposals for approximately 12 megawatts of solar PV energy. As of September GRU has accepted enough applications to generate solar PV electricity to meet the program’s targets through 2016 and there were 36 solar PV systems already installed with a total capacity of 210 kilowatts.

According to Harald Kegelmann, CEO of Advanced Solar Technologies, a Gainesville solar installation company, "GRU has done an excellent job designing a FIT policy in a very short time.  But being the first always means that there are growing pains.”  Some additional improvements suggested by Mr. Kegelmann are educating local investors, engaging stakeholders to help validate feed-in tariff rates and channel business to local firms and setting aside a portion of the program quota for households, schools, public buildings and non-profit organizations.

It seems to me that if the ultimate goal is more renewable energy projects large and small we should embrace the feed-in-tariff model and strive to improve it to work for everyone.  Why is there no government sanctioned body in the state of Florida to study this issue and tweak it to provide for new green jobs and energy savings throughout the state?  Could it be that the energy lobby is deeply entrenched in this state and therefore what little urgency there is for renewable energy is focused on large corporate utility projects? 

Regardless, the action taken by the city of Gainesville and Gainesville Regional Utilities should be commended and we should allow them the time to refine and improve the program before nitpicking the process. 

Don't look now but another big player in the home improvement market is banking on solar taking off this year.  Lowe's has announced that they will begin selling 13 home solar packages on their website and make them available in stores by the end of the month. 

The solar panels themselves will be manufactured by Akeena Solar and Brightwatts, a Florida-based photovoltaics company. The 50-watt panel also comes bundled together with a Duracell power station that has AC and DC outlets and an alarm clock-radio built in.  The price: $350 or $7/watt.  At this price Lowe's must be counting on do-it-yourself consumers to take on solar installation to mitigate the cost. Besides that fact a 50-watt system is not going to power much, maybe a couple of lights or a radio. 

There is also an $80 watt solar system available at a cost of $500 or $6.25/watt manufactured by Sunforce. 

Although this is a positive sign about the prospects of the home solar industry taking off in the near future I do not expect sales of these small home units to take off, at least right away.  In order for do-it-yourself solar to really gain momentum prices need to continue to drop significantly.  No matter how simple you make the installation it still remains a labor intensive job that needs to be done right.  In order to get consumers to take on this responsibility it better be cheaper and provide more significant energy savings. 

A cooperative effort in the State of Florida to find new and better methods of implementing renewable energy solutions is off and running and the possibilities are exciting.  According to their website the Florida Energy Systems Consortium (FESC) was "created by the Florida State government to promote collaboration among the energy experts at its 11 supported universities to share energy-related expertise. The consortium assists the state in the development and implementation of an environmentally compatible, sustainable, and efficient energy strategic plan."

According to a report by Greentech Media, The following projects are currently underway by the FESC:

Solar-Powered Desalination: This research focuses on using the sun to create drinking water from seawater. The process involves using solar energy collectors to heat the seawater at above the boiling point to collect evaporated water, which then contains no salt. The vapor is condensed after going through a heat exchanger that uses cold seawater. The fresh water is then position to fall 10 meters or more to run a vacuum, which increases the evaporation rate. The brine, with concentrated salt, is sent back to the ocean.

Germ Killer From the Sky: Early research is in place to use solar energy to disinfect water. The idea is to create a catalyst using materials such as titanium dioxide that can absorb sunlight and create free radicals. The free radicals then seek out and kill microbes in the water.

A Cooler Way to Generate Solar Thermal Power: Solar thermal power needs to be cheaper in order for it to be competitive with conventional power, Anderson said. Cutting the equipment cost by about 50 percent is the way to do it. But how? Researchers are exploring the use of ammonia to generate solar thermal power at a much lower temperature. The lead researcher of the project, Yogi Goswami, has gotten funding from venture-backed and India-based SunBorne Energy, where he serves as its technology advisor, to commercialize his research. He's planning a pilot plant at the University of South Florida. 

Solar Cell/LED/Battery Module: A solar cell produces direct current. A light-emitting diode runs on a direct current. A battery can store direct current. So why not combine them together to create a lighting system with energy storage? That's idea behind the research to build a solar cell with transparent organic material on top of an organic LED. The LED emits light downward and sits on top of a transparent platform that's embedded with lithium-ion batteries. The solar cell charges the battery during the day, and the batteries can power the LED light at night.

With such a lack of government support as well as a Florida Public Service Commission that does not appear committed to renewable energy it is great to see the university system take the lead on renewable energy innovation.