What is this Cap & Trade thing going to look like by the time and if at all it gets out of the Senate? Time will tell. Lawmakers have some time to make the American Clean Energy and Security Act (ACES Act), more palatable. It will get watered down some which is why it was a little ambitious from the beginning perhaps. There are items like "weatherizing houses before they can be sold" that concern even the greenest amongst us. We can make laws for the environment that stimulate the economy and help solve our problems in this country without government becoming larger and more overreaching than necessary. What can cap and trade do for Photovoltaics in this country and the world?
Without a doubt, all photovoltaic (PV) technology will stand to advance by greater leaps than ever before. Even more than thin film technology, the poly crystalline market should see unprecedented growth. As investors place their bets, the less risky investment will be the go to technology in the early days of such an incentivized atmosphere. There isn't the track record or proof of performance in thin film yet like there is in the traditional module world. The 20-25 year contracts that will be written for solar installations will pit CSI over thin film in the short run but the allure and ease of the thin film may sway even some of the most conservative pension fund and portfolio managers as they try to ferret out any sound investments in today's climate. With Greece, France, Germany and countries like Spain pulling back their demand, this U.S. policy of cap and trade could bring a much needed industry booth to North America. Because the installation of these technologies can't easily be outsourced, the U.S. should see unparalleled growth of solar regardless of who makes the panels. Would it be nice to keep the entire vertical food chain here? Absolutely. That is what this stimulus plan is intending to do - Ramp up domestic manufacture of solar, wind and other renewable technologies while staying competitive with Asia.
Even in Florida, there is Advanced Solar Photonics in Lake Mary, Florida that produces mostly monocrystalline silicon panels. They are the only panel manufacturer in "The Sunshine State". There are higher dollar rebates ($5 per watt vs. $4 per watt)for these panels in the Florida Solar Rebate program – if they can get certification fast enough for Floridians to take advantage of it before the funds are exhausted. The federal block grant application for funding of this program was accepted and approved in the last part of June. The FL rebate program sunsets though and once the money is gone, it is gone. PV sales in Florida will drop like a rock absent any additional incentives or legislation even with the price of PV down 45% so far this year. A well crafted cap and trade policy or Feed in Tariff model will provide the incentive needed to make solar an investment quality commodity.
The Feed in Tariff model would be a great place for a place like Florida to start. This model would work with any Renewable Portfolio Standard or Cap and Trade Policy that is put in place at the federal level. But making local legislation in advance of any federal mandates would be the smartest thing this suffering state could do. The longer the local legislators wait, the greater the opportunity for investment dollars to find alternative havens for attractive, safe returns. The sense of urgency must be on individual states and counties to pass something meaningful to get the first dollars in. Private investment is available for tax based organizations immediately. The tax based revenue generating power of municipalities etc., is the first place the PV market will see expansion during the uncertain climate. As the economic malaise fades and real GDP growth begins to occur then corporate models will begin to explode as investor's confidence is restored. This confidence is the only way thin film will see a huge increase and the overall economy will need to be much healthier for that day to come.
The first step in the PV puzzle in the U.S. is going to happen at a local level. Whether it be a Sarasota County Pilot Program for a Feed In Tariff or some "Economic Zone" or a sweeping statewide opportunity, we know to get past Florida Power & Light's vocal opposition to distributed generation of small scale solar (Solar on EVERY roof) we would first need to get past the Florida Public Service Commission (sometimes referred to as the "Florida Utilities Commission" based on, it seems, who they are serving). My remarks below are from the June 19th Florida Public Service Commission hearing on the Florida Power & Light base rate increase proposal.
My name is Monica Kennedy. I'm a USGBC LEED Accredited Professional and owner of Elite Solar Services in Sarasota. (www.EliteSolar.com) On behalf of all construction workers in the State of Florida that want to get back to work and the Florida Alliance for Renewable Energy, we'd like the Florida Public Service Commission to use all of the knowledge you've worked so hard to get in these renewable energy workshops you've been in over the last year and make it pay off by crafting a Feed-in-Tariff Policy (FIT) for the state of Florida that works and becomes a model for the rest of the country. Setting a policy where a utility is obligated to pay you for your renewable energy plus a reasonable profit is the solution for many problems we face. The FPL rate increase won't help these construction workers in the short term who are suffering the highest unemployment rate of their lifetimes and moving back in with their parents in Northern states. Lori White, the Superintendent of Schools in Sarasota says that 100 students a month are leaving the school system and Sarasota is faring better than other counties. But If you announce during this long, hot summer that you're putting together a well crafted Feed –in-Tariff policy for the legislature to debate and pass in 2010 that could bring large amounts of jobs whose skill sets exactly match those of these fleeing Floridians, they might just be able to hang in until fall which will keep our teachers and public servants employed also. The Plumbers, electricians, roofers and engineers that have been sitting in their tool belts waiting for the phone to ring are leaving Florida by the truckloads. Let's keep them here to install solar on roofs of farms, churches and businesses that can profit from the energy they generate. The Feed in Tariff Policy works well for so many European communities and created 250,000 jobs in Germany – and the Gainesville story is a success. The FIT will make good jobs NOW, not 10 years from now like the nuclear plant or jobs for 10 minutes like the 3 huge arrays out in a field like the ones FPL is building. The National Renewable Energy Labs study http://www.nrel.gov/docs/fy09osti/45549.pdf proves that a Feed-in-Tariff is the quickest way to deploy renewable energy and at the lowest cost to the ratepayer. You have the proof. Small scale distributed generation is the solution for us all! This is a budget neutral policy that both sides of the aisle can get behind and requires no taxpayer dollars.
The Navigant Study commissioned for the PSC is dated. Since then the price of solar technology has come down 45% so far in 2009 and unemployment has surpassed the worst case scenario. It's time to revisit Feed-in-Tariff and formulate a renewable energy policy that puts the Sunshine State at the top of the renewable energy revolution. Right now, according to Solar Planet, Florida isn't even in the top 10 solar friendly states. We know that FP&L is one of the greenest utilities in the country but they need a model for small scale solar or solar on every roof.
The sun belongs to everyone. The new American dream is to get off the grid. A Feed in Tariff allows EVERYONE to participate. The opportunity to get the $1 trillion of private sector cash sitting in money market funds of private investors put into OUR Florida economy is fleeting. This money was in intangible assets like stocks and bonds and is now seeking a safe, physical investment with a reasonable rate of return. These investment dollars are fungible and will easily cross borders to the state that passes the Feed in Tariff first. Or even CANADA! It's a race. Jennifer Granholm in MI is this close to passing one up there. Do you really want all of these investment dollars going up there along with the workers who will fly to wherever a Feed in Tariff is passed first?
. Florida is one of the last states to even pass a Renewable Portfolio Standard? http://www.epa.gov/chp/state-policy/renewable_fs.html (notice no other state included NUCLEAR in their standards as Florida attempted to do last session)
We are being left in the dust when it comes to renewable energy despite what this one green utility is doing. Solar on Every Roof goes against the monopolistic FPL model but they'll adapt and make money; they always do and that's fine. Let us all make a little money. Create a new industry for Florida. That's what you'll be doing. We know you don't pass the laws but we want you to get ready for it because you'll have to make it work. Be our heroes. This could be a $14 million a year industry that could dwarf citrus and even tourism. That's what we need to get this state out of the muck. By the way, you'll be increasing our national security, energy independence and reducing our carbon footprint. I mean this is what the President wants, the Governor wants and most importantly what the people you represent want. Be Florida's HERO and prepare and recommend a fantastic Feed in Tariff policy for passage in Tallahassee in 2010. Thank you.
There was much applause in the room from the packed house of the Sarasota City Hall Chambers. Many others spoke to the FPSC about the Feed in Tariff. A letter to the editor of the Sarasota Herald Tribune shortly after from Martin Bregman of Venice sums up the PV situation in "The Sunshine State" –
"What could be more suspicious of corruption than the failure of the Florida Legislature to promote solar energy?"
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