The following article was provided by a Green Choice Member. If you are a Green Choice Member and you would like to contribute, please e-mail
This email address is being protected from spam bots, you need Javascript enabled to view it
.
Your Energy. Your Future. By: Tom Stanfield
Renewable energy firm Solar Winds Power Systems, LLC, (www.thesolarwinds.com) located in West Michigan is excited about the future of Photovoltaics (PV). As West Michigan’s industrial, commercial, and residential installer and designer of renewable energy systems (specializing in solar arrays (Photovoltaics) and domestic hot water systems) Mike Linsea co-founder and his team are assisting organizations and individuals to work towards greening the planet by providing education and guidance regarding the environmental and economic reasons to use renewable energy sources in place of fossil fuels.
The more solar power we use the less we'll have to rely on fossil fuels; meaning less pollution to our environment. Using solar panels/photovoltaics (PV) is a beautiful choice because of low maintenance, expected long life cycle (40-50 years), and warranties at twenty-five years.
The Photovoltaic (PV) Industry is growing worldwide; large contracts are being written in Germany, Japan, Australia, China and Canada (because of their new feed-in-tariff also known as the FIT). Canada’s FIT give incentives throughout Ontario causing it to be one of the major hotspots in the world dedicated to PV expansion. The FIT is a very lucrative 80 cents (Canadian) per kW hour.
Feed In Tariff (FIT) is a method in which power companies pay an incentive for alternative power generation primarily using Solar / PV.
In the U.S., PV growth is showing in New Jersey, California, Iowa, Minnesota, Wisconsin, and Florida. Many of these states are offering FITs or experimental FITs. It has been proven that FITs stimulate investment in solar generation by creating a revenue stream with lucrative ROI for investors. Governments promote Feed in Tariffs for states and countries to help level the playing fields by creating incentives that balance against subsidies that the power companies have and need to operate and be profitable. The U.S. Government is, also, offering businesses and residence tax credits of 30% for solar through Federal Business Energy Investment Tax Credit (ITC) and Residential Renewable Energy Tax Credit programs.
Michigan currently has several programs offered by the two major power companies, DTE and Consumers Energy. DTE has rolled out a very comprehensive and user-friendly program that gives incentives to users to take advantage of the FIT. Contracts are being offered for twelve and up to twenty years. Consumers Energy has a small two megawatt experimental FIT which was introduced in 2009. Consumers Energy states that the response has been excellent. They are in the process of analyzing and evaluating the results of the experimental program. It is anticipated that Consumers Energy will expand their program proportionally to be par with DTE’s program.
Michigan throughout the years has attempted to become a leader in renewable energy and has made great strides on the manufacturing sector of this industry. More focus and work is needed on the practice side of the equation. We are talking the talk and hoping to walk the walk.
The solar industry in Michigan has spent several years dispelling the myth that Michigan does not have enough sunlight potential to make PV work. Thirty plus years ago this statement was not inaccurate, however, with the advancements in technology with PV, Michigan is a very viable location for this technology. It has been proven in other similar areas with similar climates throughout the world. Germany who has 45 percent of the world’s solar installations is two sunlight classes lower than Michigan on the NREL Solar Potential Map. The German’s envy the amount of sunlight in Southwest Michigan and have been asking “why not solar?” to our Michigan Representatives. They do not understand our hesitance to invest since it has been successfully implemented in their country for the past fifteen years.
Another option offered by power companies is Net Metering. Net Metering is a way for customers to reduce their electric bill by generating some or all of their electric needs and receive a credit from the electric provider for any excess generation delivered to the electric provider during the billing month.
Research has found that without a FIT and using net metering there is a lower Return On Investment (approximately by 2-3%). With this said, we still need to start the process in order to grow into the success of using solar energy. Why wait? Make the investments today with today’s dollars and fuel costs versus waiting too long and reverting to more desperate measures when the economy is under more stress because of higher energy costs and decreased value of money.
This is truly a cultural energy paradigm shift so future generations can benefit from investments in this technology today.
Remember an investment in PV today is fixing your price of energy into the future.
|