The Competitive Advantage of Solar Hot Water in Wisconsin

A PowerPoint (in PDF) by RENEW Wisconsin’s Executive Director Michael Vickerman presents the preliminary conclusions of a forthcoming white paper on solar hot water system:

 When energy prices rise above $1.00/therm and incentives are available to reduce system cost by half, the internal rate of return (IRR) on investment in a commercial SHW system will surpass those of traditional investments. Moreover, it is as risk-free an investment as one can make.

 Natural gas price volatility will invariably impart a herky-jerky pattern to annual returns and installation activity.

 To ensure the steady of expansion of SHW technology, governments should consider policy options to provide some buffer against fuel price volatility and reduce front-end costs.

Hudson company sets Minnesota solar standard

Energy Concepts, Hudson, installed Minnesota’s largest solar system, according to an August article Jean Hopfensperger in the Minneapolis-St. Paul Star Tribune:

A Minnesota first is unfolding this month on the rooftop of a Vadnais Heights social service agency, where 525 solar panels are being installed to take energy conservation to new heights.

When completed this month, the largest solar electric project in the state will sit atop an agency best known for helping adults with disabilities. State officials say it will increase Minnesota’s solar capacity by 10 percent.

What’s even more unusual is that the rooftop rays will fuel a geothermal energy system hidden below the concrete parking lot of the building, home to Merrick Inc., a nonprofit that is making its energy production — and its own products — a Minnesota model of green.

“We’ve married two emerging technologies, geothermal and solar, in a commercial setting,” said John Wayne Barker, executive director of Merrick Inc. “We’ve taken an ugly duckling — this building — and turned it into a swan. Hopefully we’ll inspire others to do the same.”

The 100-kilowatt project reflects the rise of large-scale solar experiments in Minnesota, said Stacy Miller, solar administrator at the Minnesota Office of Energy Security. Of the 250 or so solar installations, the average-sized project is just four kilowatts, she said.

From the newsletter of Energy Concepts:

With the help of Energy Concepts, the Merrick building in Vadnais Heights, recently broke a record for solar installations in Minnesota. Lined up on its flat roof just south of St. Paul, 108 solar modules are daily converting the sun’s energy into electricity. The 130,000 kilowatts it is expected to generate annually will be the highest ever for a single Minnesota project and represents fully 10% of installed solar capacity in the Gopher State.

Designed by Energy Concept’s Craig Tarr, the solar installation powers the company’s underground geo-thermal system, which provides most of the building’s heating and cooling.

“It’s a biggie,” Tarr says, “and represents a new level of achievement in terms of combining solar and geo-thermal at one site. Senator Klobuchar, the Governor—they have VIPs visiting that site almost every day.”

Minnesota and Wisconsin, despite their stereotype of being cold and dark, actually, according to Tarr, have excellent overall solar potential.

Mayor will accept $400,000 grant at solar conference

From a media release issued by Milwaukee Shines:

On Thursday, October 23rd, Milwaukee will host the fourth annual Solar Decade Conference at the Midwest Airlines Center, expected to draw 400 people. Sponsored by We Energies, Focus on Energy and the Wisconsin Green Building Alliance, the conference will focus on reducing the informational, economic and procedural barriers to solar energy proliferation in the region.

“The benefits of solar energy are great,” said Mayor Tom Barrett, “Not only does solar energy provide power from a secure domestic source, promote sustainable urban development, and support greenhouse gas reduction targets, but advancing solar technology creates new economic opportunities for our residents and businesses.”

Also during the conference, Mayor Tom Barrett will accept a grant of $200,000 from Tom Kimbis, Director of Market Transformation for the U.S. Department of Energy Solar Energy Technologies Program. Earlier this year, the City of Milwaukee was named one of America’s 25 Solar Cities by the Department of Energy because of its commitment to solar technology adoption. This grant was awarded at that time.

Roman Draba, Vice President of Regulatory Affairs & Policy at We Energies will present a matching grant also in the amount of $200,000.

The awards are intended to accelerate solar adoption in cities by supporting their innovative efforts with financial and technical assistance. Selected cities are those prepared to make a comprehensive, city-wide approach to solar technology that facilitates its mainstream adoption.

The Solar Decade Conference, open to the public, will feature “renowned industry experts as they discuss the benefits of solar energy for your home, business and career!”

Alliant files "closing arguments" on Cassville plant

From a media release issued by Alliant:

MADISON, WI – October 17, 2008 – A decision on the future of the Nelson Dewey Generating Station is just weeks away. The final phase of the regulatory process kicked off today, as Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE: LNT), filed its . . . brief in the case.

The brief highlights that no generating facility in Wisconsin history has ever provided the varied benefits that Nelson Dewey 3 will bring. These benefits include helping to jump start the biofuels economy in Wisconsin and establishing an estimated $50 million dollars annually in economic development from that market, creating much-needed jobs for southwest Wisconsin during the construction and operation of the plant, and increasing the transmission import capability into the state by as much as 600 megawatts.

Also addressed in the brief is the importance of strong ratemaking principles to the project. Ratemaking principles define how construction costs will be recovered in utility rates throughout the life of the generating facility. “These are clearly challenging economic times for all of us,” said William D. Harvey, Chairman, President, and CEO – Alliant Energy. “We are thankful that, in Wisconsin, our regulators have the ability to fix the financial parameters for the lifetime of the project. That certainty can help provide our customers and our company with stability, which, now more than ever, is critical.”

The proposed 300 megawatt plant will have the ability to burn not only coal, but also switchgrass (native prairie grass), corn stalks and waste wood from area fields and forests. The Public Service Commission of Wisconsin (PSCW) is considering WPL’s proposal, with final briefs in the docket due at the end of this month. The PSCW is expected to issue an oral decision about the future of the project in mid-November, with a written order due in mid-December.