Anyone who is in the solar business or has invested in solar in the last year probably cringes every time they drive north of Orlando on the Turnpike when they see the billboards promoting Florida as the Solar State. It is especially discouraging when a four year solar energy program is now perceived as a failure, not because of lack of interest but because of lack of funding, or political will.

Frustration has been building day in and day out, clients calling their installers and the Governors Energy Office without any sign of hope that the State is willing to make good on their promises. I recently had a conversation with a very high ranking politician who couldn’t find value in funding the solar program because no jobs would be created; the money owed was for previous jobs. After the stunt the legislature pulled during their so called special session lasting only 43 minutes debating over the motion to adjourn which came within the first 15 minutes of the session, the people of Florida are looking forward to this year’s election season, and being an incumbent is not a good seat to be in.

Then came the magical sign of hope. A theoretical double rainbow that has led the Florida Energy & Climate Commission to a pot of gold.  This week the Florida Energy & Climate Commission decided to allocate $13.8 million in unspent “found” Federal Stimulus dollars to begin issuing checks to some of the approved solar rebate applicants. Though this is only the tip of the iceberg in claims to be paid it’s a start. Additionally the commissioners said that the program stoked the false expectation that people who installed their solar system during the program timeline would automatically receive rebates, eventually. The result, the long waiting list of people who didn’t want to miss out on solar rebates if the legislature failed to act again…

The commission has publicly committed to continue to seek additional funds for those still waiting unfortunately there is no timeframe as to when the additional money will be found. The proverbial check is in the mail, but for some of you, it really is.

So Intense.

March 04, 2010|By Julie Patel, Sun Sentinel

The Sunshine State is poised to be the second largest solar energy producer in the country, thanks to three large solar plants Florida Power & Light will complete this year.

FPL kicked off operations at a solar plant in DeSoto County in October with great fanfare, including an appearance by President Barack Obama. Just two years earlier, former President Bill Clinton helped the company unveil its plans to build large solar plants.

When finished, the DeSoto plant and two others in Martin and Brevard counties to be completed this year will generate 110 megawatts of energy — enough to power 35,000 homes and prevent the emission of an estimated 575,000 tons of greenhouse gases over the 30-year life of the facilities.

Solar energy proponents say the benefits of switching from polluting fossil fuels to renewable sources are substantial – creating jobs, providing clean power sources and diversifying Florida’s power supply. But some consumer advocates and utility critics are raising concerns about the costs of solar energy – now many times higher than for other sources – and proposals to allow utilities to pass on the costs of such projects without traditional state regulatory oversight.

“We have got to look at all energy solutions,” said Sen. Mike Haridopolos, R-Melbourne, who is in line to be the next Senate president. “The ratepayers need to know exactly what the costs would be…In a very weak economy, asking consumers to pay three or four times more may be untenable.”

FPL’s solar plants were built under a provision in a 2008 law that allowed utilities to pass the costs of solar or wind projects generating up to 110 megawatts of energy without the normal regulatory review. FPL officials have said that kind of a provision is needed for it move forward with other solar projects, including a $300 million 75-megawatt solar plant as part of a sustainable city planned on Babcock Ranch in Charlotte County.

Several Florida lawmakers are proposing doing just that. They have filed a half-dozen renewable energy and energy efficiency bills, including one that have would allow utilities to pass to customers the costs of solar plants generating up to 700 megawatts of energy in the next few years.

The House version of the bill, proposed by Rep. Trudi Williams, R-Fort Myers, would allow utilities to earn a profit on shareholders’ investment for the plants that is a half-percent more than the high-end range approved by regulators. That would allow an 11.5 percent profit for FPL.

FPL officials said they’re not taking formal positions on bills at this point but legislators consulted with utility executives, including FPL Vice President and Chief Development Officer Eric Silagy, on the measures. “As the state’s largest solar energy producer, we support legislation that encourages further investment in the expansion of renewable energy production and solar technologies in Florida,” FPL spokesman Mayco Villafana said.

Like the provision in the 2008 law, the legislation this year does not limit the cost to customers and does not require the utility to explore options that might produce more renewable energy at a cheaper cost. FPL’s three solar projects cost $659 million – adding up to about 25 cents per month for a typical customer for 25 years – but the plants and another project that has been shelved would only bump up the utility’s renewable energy capacity from about 1.4 percent in 2007 to about 1.9 percent.

A study by Navigant Consulting commissioned by the Public Service Commission estimated that building a large ground-mounted solar panel plant in 2009 would cost about $7,100 per kilowatt of energy capacity but the price is projected to drop to $4,300 by 2020. The study said the price of other renewable energy options is cheaper for now and is expected not to change much by 2020. For instance, Navigant estimates solid biomass plants cost $4,000 per kilowatt; wind farms cost $2,470; and solar water heating costs $1,700.

Critics say the bill would allow utilities who use the provision to essentially boost rates and profit margins after the PSC all but rejected large base rate hikes for FPL and Progress Energy this year. It would strip the PSC of one of its core functions: determining whether new plants and additional energy is actually needed.

Michael Dobson, president of Florida Energy Producers – a group of about 40 renewable energy producers, project developers and economic development groups – said the Williams bill is appealing to his group and lawmakers because job creation is critical. But he said it would “allow for a unique return on investment that I’m not sure is the best thing for consumers.”

“Let’s just call it what it is: it’s a utility bill,” he said. “It does encourage more renewable energy but the bad thing is, it still maintains the status quo in that it passes additional costs to consumers.”

Dobson told the House utilities committee last week that utilities and independent renewable energy producers should be allowed “to fight it out” for business instead of any group receiving advantages.

But Sen. Mike Bennett, R-Bradenton, who proposed the Senate’s version of the bill said it would boost the state’s economy and jumpstart its renewable energy industry. “We’ve got to find ways to encourage renewable energy [by] either subsidizing them or coming up with a financing program that will allow people to put renewable energy products in their house,” he said.

Dobson’s group and other environmental and renewable energy groups support another approach they say would do the same thing: a measure proposed by Sen. Nancy Detert, R-Venice, requiring 20 percent of the state’s energy production to be from renewable resources by 2022.

A bill proposed by Bennett and Rep. Michelle Rehwinkel Vasilinda, D-Tallahassee, could encourage home and business owners to install solar panels and solar water heaters to their homes through rebates funded by a 25 cent monthly fee for utility customers.

Justin Hoysradt, a vice president of Jupiter-based Abudant Energy, which installs solar systems, said small businesses like his would stand to benefit. He said installing solar systems on location doesn’t require electricity to travel through hundreds of miles of power lines – as it does when utilities build large renewable energy plants.

Julie Patel can be reached at and jpatel@sunsentinel.com.

The PSC has to hear out the requests of Nweze and most likely conduct an additional study to prove their decision is not going to affect the lower income working class Floridians as harshly as Ms. Nweze condemns. Her letter attacks solar panels, stating that only the rich and affluent can afford them and “he bottom line is simple. Forcing low- and middle-income Floridians to subsidize energy-efficiency upgrades for those who can afford them is immoral and wrong.”

To be clear to the public, the program Nweze is attacking, estimates at this time, an 18cent per month, per meter charge or rate impact measure to fund the program. This is more that 20X less than storm clean up.

However, in order to humor, Ms. Nweze’s rant and fight for the poor who in her words, “are not the source of the problem because they do not own energy hogging pool pumps, plasma tv’s and don’t even have air conditioning”, let’s just see how much money the PSC is robbing from the poor so the rich can live so lavishly.

Just on the Florida Power and Light grid alone the program would generate approximately $13.8 Million annually to help subsidize energy efficiency upgrades. Let’s also assume 10% of that money must go to administration and marketing to make people aware of the program and ensure money is paid out timely and fairly. That would leave around $12.4 Million available annually for the investment.

Let’s assume that 25% of that money is used to subsidize the cost of solar water heaters with a $500 rebate. Resulting in just over 6,000 new solar water heating systems installed to replace old, high energy using, electric hot water heaters.

Now if Ms. Nweze looked deeper into this pool of money, passed her self serving reflection, she would promote and encourage this program to her under paid constituents which she represents. She would also recommend they take advantage of the State low cost loan program for solar water heating. By doing so, those she is looking to protect could actually benefit from  a 5-10% rise in their income by not having to pay for electric water heating. Be it as it may, she is talking about people who make a mere $10k on paper, but being able to keep an extra $1000 per year might mean a lot to that person, especially since it means a lot to MOST people…

As for the remaining 75% of the money not used for marking, administration or solar water heaters, this money could be used for an additional 930 solar photovoltaic generating systems for the “rich people”. Rich people like the postal worker, boat engine mechanic, school administrator, retired van line sales person, aerospace engineer, body shop technician and high school sports coach we just installed solar energy systems for.

All in all, the program would offset approximately 20MW of dirty power consumed each year for a mere 18cents per meter per month. If the power company could build power plants in mini-doses, according to Moody’s Investor Services, the cost would range around $6000 per kilowatt. (See article).

In other words, here is a chart which severely disproves Nweze’s claim that building new generation will cost the poor 1/3rd less than energy efficiency. But perhaps, what she means is that if new plants are built the PSC should charge higher income earners more…

It is letters like Nweze’s, while her intent is good, her information and accuracy to clearly represent her cause will result in more tax dollars spent by all income classes to give the public service commission more time to research what they already know is false. Just the simple task of drafting more proof will cost money. Please take 10 minutes of your time to support the PSC decision to create a rebate program for energy efficiency upgrades to your home, such as solar water heaters, photovoltaic’s, high efficiency air conditioners and compact florescent light bulbs. (Contact the PSC Here)

Google listened and it has just trumpeted the world’s loudest wake up call to Americans and American Business. Welcome to the world of Google Energy. Google Energy is now fully authorized to buy and sell energy at market rates.

Now the first thing that comes to mind is “am I going to be able to buy power from Google?” Not exactly…

Google is on a mission to be able to supply their offices and data centers with the highest quality and most affordable renewable energy they possibly can. By becoming a registered utility Google now has access to Transmission lines, wholesale energy rates and energy brokerage capabilities.

Google Energy can now develop a wind or solar farm and be granted access to transmission lines as a utility, sell that energy to Google itself and control the rates of its data centers all completely regulated through the Federal Energy Regulatory Commission.

But why is this SO important?

Google Energy has just proven to all of American business that if you are big enough, consume enough energy and have the right technology, you can make financial sense of starting your own “utility”. Being in the business of developing your own “Utility Type” company to develop renewable energy properties to sell energy back to your business entity is the first massive step to a Distributed Renewable Energy Generation.

Expect Google Energy to be followed by the possible likes of, GM Energy, Toyota Energy, Pfizer Energy or maybe even WalMart Energy. Why would these huge consumers of Energy NOT follow in Google footsteps in leasing land, developing energy property and then trading the electricity through the grid to offset their energy bills for their stores, 100 story office buildings or dealerships all while enjoying huge tax credits from the Federal government? This is not a new idea for Google, they have had a long standing goal to be carbon neutral as well as to create renewable energy cheaper than coal (RE>C).

If you’re “Waiting on the World to Change”, watch as businesses follow Google and Google Energy into the renewable energy development and utility trading business. When the Federal Government gets around to signing an energy bill your local utility company may quickly start to offer a rebate for the installation of solar panels on your home, take a second look at what they are offering you, maybe, just maybe Google or one of its possible followers may have a better offer for you.

Step 1: Click on the Facebook Chicklette to the right and become a Fan of Abundant Energy Inc. You will get occasional status updates delivered right to your Facebook page.

Step 2: Share your support by inviting your Friends on Facebook to become a Fan of Abundant Energy. You know they should be more interested in Solar Energy and Saving the planet, this is a subtle way to help push them in the right direction.

Step 3: Saving the planet requires some effort.  Comment on some of our posts. Your opinion matters and when your friends see you’re passionate about solar they may also voice their opinion as well. Healthy discussion and action will save the planet.

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