The following is the abstract of his thesis, and you can download the whole report by clicking here.

Greg Sachs: A System Architect’s Basic Guide to Understanding & Designing Next Generation Grid Systems

A strong and growing desire exists, throughout society, to consume electricity from clean and renewable energy sources, such as solar, wind, biomass, geothermal, and others. Due to the intermittent and variable nature of electricity from these sources, our current electricity grid is incapable of collecting, transmitting, and distributing this energy effectively.

The “Smart Grid” is a term which has come to represent this ‘next generation’ grid, capable of delivering, not only environmental benefits, but also key economic, reliability and energy security benefits as well. Due to the high complexity of the electricity grid, a principle based System Architecture framework is presented as a tool for analyzing, defining, and outlining potential pathways for infrastructure transformation. Through applying this framework to the Smart Grid, beneficiaries and stakeholders are identified, upstream and downstream influences on design are analyzed, and a succinct outline of benefits and functions is produced.

The first phase of grid transformation is establishing a robust communications and measurement network. This network will enable customer participation and increase energy efficiency through smart metering, real time pricing, and demand response programs.

As penetration of renewables increases, the high variability and uncontrollability of additional energy sources will cause significant operation and control challenges. To mitigate this variability reserve margins will be adjusted and grid scale energy storage (such as compressed air, flow batteries, and plugin hybrid electric vehicles or PHEV’s) will begin to be introduced. Achieving over 15% renewable energy penetration marks the second phase of transformation.

The third phase is enabling mass adoption, whereby over 40% of our energy will come from renewable sources. This level of penetration will only be achieved through fast supply and demand balancing controls and large scale storage. Robust modeling must be developed to test various portfolio configurations.

The National Renewable Energy Lab (NREL) reports that feed-in tariffs are responsible for 75% of solar photovoltaic and 45% of wind projects worldwide.  Feed-in tariffs (FITs) require utilities to pay per kilowatt-hour to purchase electricity from renewable energy generators.  They enable stable and reliable pricing, and small generators and large plants have an equal opportunity to compete. Countries in Europe, especially Germany, France, and Spain, have used feed-in tariffs to greatly increase renewable energy production because of their increased cost-effectiveness.  For example, California receives 70% more sunlight for producing solar energy than Germany does, though the latter installs 15 times as many solar electric systems per year due to the effective use of FITs.

Generally, green markets in the United States lack strong federal support, and instead, progressive states like California create markets and regulations that eventually spread to the rest of the country.  Though many states have established FITs before, institutional resistance, too high or too low pricing, and bureaucracy have rendered them virtually ineffective. California is again taking the lead and has recently proposed to launch a new variation of the tariff.  In California, investor-owned utilities will be required to purchase electrical energy from renewable generators that are 1MW-20MW in size.

New York recently pushed a bill for FITs on Long Island, but it did not pass. The Long Island Power Authority (LIPA) already awards large rebates (up to half of system cost!), and the 25% New York State and 30% federal tax credits have already made solar systems incredibly cost-effective.  We can only hope that pushes for cost-effectiveness like the FIT can get the United States on par with our European friends.

I came back to EmPower full time upon completing my degree earlier this summer, when rebates were down to $2.00.  After a few weeks, we got word that the rebates were going down even further, and might even dry up for the rest of the year! Luckily that didn’t happen, but rebates have officially been lowered to $1.75 per watt for up to 10kw or $17,500.

What does this mean for homeowners who want to go solar? Well, fortunately system costs have gone down as well.  It’s a typical effect of supply and demand: demand for solar panels have skyrocketed in the past few years nationwide, so industry kicked up production and took advantage of economies of scale.  It’s still a great time to go solar, as rebates tend to stay somewhat proportional to system cost.  But it is likely that utility rebate funding will indeed dry up in the near future.  This is a tribute to the success of the program – and the awesome fact that Long Islanders are supporting the clean energy mission – but the money won’t be available forever.  If you are at all considering going solar, now is the time.  Solar panels are cost effective anyway, but you don’t want to miss the chance to have LIPA pay a large chunk of your system cost and reduce the payback by a few years.  Given the speed at which rebates have been dropping, there is no predicting how long they’ll last.

See for yourself a rebate update on LIPA’s Solar Pioneer Rebate Block Guidelines Site website.  If you follow some links to the rebate block graph, you can see the rate at which the rebates are being dispersed.

And to read a Newsday article on LIPA’s rebate status, click here



http://www.ig.energy.gov/documents/OAS-RA-10-16.pdf

Why the delays in spending?  Low levels of spending and job creation were clearly not the desired outcome of this program.  But the one-year analysis found impediments to implementation including administrative and regulatory issues at the federal, state, and local levels.  A shortage of Department staff and abundance of federal controls have made it difficult for local governments to spend money as planned.  More details on these issues can be found in the status report.

The Department of Energy had the chance to respond to this audit and argued that the program was more successful than made to appear by this report; much of the money has actually been committed to projects so there is promise of spending in the near future.

What does this mean for solar? Although most stimulus grants for renewable energy technologies are given through other areas, like the State Energy Program leg of the Recovery Act, the Energy Efficiency and Conservation Block includes solar power on government buildings.  According to the New York State Energy Research and Development Authority (NYSERDA) and Governor Paterson back in March 2010, $24 million of this block funding was awarded for clean energy projects in small municipalities across New York state.  Plans for this money included both solar photovoltaic and thermal systems on various facilities including fire stations, libraries, and town halls.  Here is the breakdown of funds for Long Island:

http://www.nyserda.org/economicrecovery/documents/rfp10_awardees.pdf

It’s great to see that New York municipalities are on board and in many cases leading the mission of spreading solar energy and efficiency!

The current rebate is $2.00/watt (up to 10KW) for a residential solar electric system.  That means LIPA will potentially pay up to $20,000 of the system cost!  However, it is possible that the LIPA Rebate will run out in the next two weeks and there are no guarantees that rebates will be available in the future.

The chart below was taken from the LIPA webpage:

This graph shows that as of August 6, 2010 the Solar Pioneer Rebate (which is the Residential program) is almost gone.  There are only 200 KW left for the year – that’s only 20 residential systems for all LIPA customers!  Just to give you some more insight, in the last three weeks the block went from 500KW to 800KW.  Within the next couple of weeks, the Solar Electric Rebate will likely disappear for the rest of the year.

If you would like to proceed with a solar electric system, there’s no time to waste if you want to secure these rebates.  Please call our Sales Manager, Joe Cordes, at your earliest convenience at 516-286-1477 and we can get you started.  We will have to submit your Rebate Application before they close the program for new applicants!

Invest with confidence. Act now.

Last week, EmPower Solar moved to new offices.  If you’re eager to come by, we are still VERY easy to find.  We’ve only moved 2 doors down the street – about 30 seconds from our old offices.  Our phone number is the same (516) 837-3459, but we can now be found at:

221 Long Beach Rd
Island Park, NY 11558

Over the past year, EmPower has experienced significant growth which required us to acquire more space.  In 12 months, EmPower’s number of employees more than doubled from 12 to 30.   Our lifetime number of installations has surpassed 200, cumulatively greater than 1 megawatt of solar.  Recently, EmPower designed and installed the largest commercial solar installation on Long Island – a 117-kW system at Piece Management in New Hyde Park.  All of these underscore the strength of the solar market on Long Island and the promise for continued growth for EmPower and the renewable energy industry!

Schieren: Reasons to take a shine to solar power

By David Schieren

Long Island’s and our nation’s current energy paradigms are not sustainable. Every day we buy about $1 billion of oil from other countries, some of which are hostile to America. Every day, air pollution from our fossil-fueled power plants creates serious public health problems, including increased asthma rates, cardiac issues and premature deaths. Every day we wait for BP to plug the Gulf oil leak as we helplessly witness the destruction of wildlife and the livelihoods of thousands of Americans.

A renewable energy economy is the solution. A renewable energy economy will stabilize future energy prices, create jobs and increase domestically supplied energy while decreasing imports. A renewable energy economy will create a more prosperous, healthy and civil world for ourselves and future generations.

Locally, there is a pressing need to bring new energy sources into our power mix. Renewables, including solar energy, are beneficial for all Long Islanders. Solar rebates and tax incentive programs not only benefit those who choose solar energy systems for their homes and businesses, but also are good for all ratepayers. Here’s why:

As grid electricity prices continue to go up because of volatile and increasing fossil fuel prices, solar prices are coming down. Electric bills have consistently increased in recent years while solar costs have decreased at a rate of nearly 4 percent a year since 1998, a trend expected to continue. Many industry experts predict solar energy will achieve “grid parity” (the moment when solar electricity costs the same as traditional electricity) within the next five years. Through net metering, excess solar capacity is sold back to the Long Island Power Authority resulting in significantly lower bills for the solar user and a supply of clean, low-cost power for the other ratepayers.

There is much more than meets the eye regarding the value of solar output. The true market price of electricity fluctuates during the day, even though customers pay a constant rate. The real-time price of electricity spikes during sunny hot summer days, which is exactly when solar power works best. LIPA benefits from bringing more solar online because it reduces this peak demand, which has great economic benefit to the utility.

In addition to the direct economic advantages, solar energy boosts overall grid reliability because it puts a cap on surging demand on hot summer days. Remember the 2003 blackout? Richard Perez at the Atmospheric Sciences Research Center at SUNY Albany states that if as little as a few hundred megawatts of solar energy had been online throughout the Northeast, the blackout could have been avoided.

The socioeconomic gains of renewable energy are enormous. Solar does not release particulates or carbon dioxide into the air, leading to significant health benefits. Solar can be used to fuel electric vehicles and help reduce our insatiable reliance on foreign oil. Renewable energy and energy efficiency-related jobs cannot be outsourced overseas. The green industry can be a powerful force for reviving Long Island’s economy and that of our nation.

In the near future, solar, wind and other renewables won’t need incentives to be economically viable, but for the moment they are a necessity. Currently before the state Legislature is the New York Solar Industry Development and Jobs Act of 2010. This legislation would create a solar renewable energy credit market where solar owners would receive a SREC for every megawatt-hour of electricity produced; utilities would be required to purchase SRECs based on a certain percentage of their electricity sales. This would move solar away from a rebate structure and create market-driven incentives for individuals and organizations to install them. Whether or not this legislation passes, it is clear that the price of solar is coming down, and because of its many benefits, Long Island, New York and the United States should continue to aggressively invest in renewable technologies.

Today, the New York Times reported on a looming risk to the future of PACE financing – America’s largest mortgage guarantors, Fannie Mae and Freddie Mac.  PACE, or Property Assessed Clean Energy liens, are a creative financing mechanism designed to make weatherization and renewable energy improvements affordable for more homeowners.  First developed in Berkeley, California in 2008, PACE allows homeowners to pay for energy improvements through a municipal property tax lien.  They are assessed a property tax increase – instead of needing to secure a bank loan – and if the property is sold, the energy lien passes on to the new owner.

Although only a small number of communities have PACE programs in place, PACE has been heralded as one of the most promising ways to encourage investment in home weatherization and solar energy systems.  The process of acquiring a PACE lien is less strenuous than securing a loan AND since the benefits of the improvements are tied to the home, it makes it easier to sell the home (and the energy project) to a new owner who will continue to pay off the investment.  Moreover, PACE is based on existing property lien models which use the same method to pay for things such as sidewalks, making their structure familiar to municipalities.  PACE has been so well received that the Obama administration allocated $150 million to help communities establish PACE programs.

But, all of that may come to halt after Fannie Mae and Freddie Mac sent out a letter May 5 warning mortgage lenders that energy liens are “not senior to any mortgage delivered to Freddie Mac.”  They claim that if a homeowner defaults on a mortgage, taxpayers will unfairly bear the burden of covering the cost of the energy lien.  It is unclear why Fannie Mae and Freddie Mac are singling out PACE for this special treatment, when they accept other property liens without concern.

Already, many homeowners (most in California) have been told they will need to pay off the PACE lien in its entirety before they can acquire a new loan or refinance their mortgage.  Many PACE programs have been suspended and energy projects in the pipeline have been canceled.

PACE is an excellent method of encouraging investment and deploying renewables such as solar.  The Federal Housing Finance Agency should clarify its position on the issue and make it so that improving a home’s energy efficiency or installing a renewable energy system will not make it harder to secure a mortgage.

The video below by SolarOne does a great job of explaining how the SREC market would work and all the benefits it would bring to NY.

Click here to view the embedded video.

Some important points are:

• Create about $20 billion in economic activity in the state
• Residential and commercial size systems would benefit
• 140x increase in New York solar capacity by 2025
• Low cost: only about 39 cents extra on each month’s electric bill

This legislation needs to get voted on by June 21 when the Summer legislative break begins.  Take action and let your representatives know that you support the Solar Industry.

EmPower’s Commercial Project Manager Matt Mathosian was recently featured in Newsday’s Voices of Long Island.  From the article:

Mathosian, a project manager for EmPower Solar, an Island Park firm behind some of the largest solar-energy projects here, including a recently completed 100 kilowatt project at the Unitarian Universalist Congregation at Shelter Rock in Manhasset.

“The renewable-energy industry has got to sustain itself. Equipment prices are coming down, and we’re getting additional incentives as far as tax credits. We’ll accelerate our business in the sector. Today, I’m in Long Beach. The only thing I see all day are oil tankers. What’s the difference if there are wind turbines in the water? Of course we’d like to see the power plants all shut down, if what the government is striving for is a totally sustainable renewable economy.”

Matt appeared in a special series Newsday ran on called “The Future of Long Island: Energy.”  Check out the other interesting articles which discuss the unique energy challenges Long Island faces and the potential role of solar energy in future energy decisions.