Most of those American installs consisted of utility installations.  Utility installations in Arizona, California, and New Mexico made up the largest portion of the utility projects in the US. Overall the utility installations grew 325% over the second quarter of the year. Over 500 MW of utility PV is under construction in the US and anticipate completion in early 2012.

For more information on this report, please visit

http://www.treehugger.com/renewable-energy/solar-industrys-dead-not-hardly-us-or-china.html-energy/solar-industrys-dead-not-hardly-us-or-china.html

Today, the price of solar panels is one quarter of what it was in 2008.  Technological improvements coupled with generous global incentive packages enabled solar panel manufacturing capacity to increase and as a result have driven down the cost of installing these systems.

In 2006, the California Public Utilities Commission began the California Solar Initiative, providing more than three billion dollars in incentives in the form of rebates for renewable energy projects.  Southern California Edison’s rebates for commercial solar projects is currently five cents a kilowatt hour, meaning businesses that install solar will be paid five cents for every kilowatt its solar system produces every hour.  Over five years, a business can earn up to $35,000 from a one hundred kilowatt solar system.

The United States Department of Treasury administers a renewable energy grant program that began as part of the American Recovery and Reinvestment Act of 2009.  When signed into law, the program was only supposed to last one year but was extended through 2011.  For solar installations, the grant is equal to thirty percent of the system’s cost and solar system owners will get this amount regardless of their earnings and tax bill.

The Treasury Department’s renewable energy grant will become a tax credit on January 1^st, 2012.

“With the credit, companies can’t reduce their tax liability by more than the value of their tax liability,” says Geoff Tomlinson CEO of Vaha Sustainable Energy. “While the grant will pay the full 30% of cost regardless of how much is owed in taxes.”

For a hundred kilowatt system that normally costs $450,000, the renewable energy tax grant expiring at the end of this year pays $135,000 to the buyer upon completion of the project—saving businesses thirty percent of the initial payment on a solar installation.

The Treasury Department also implements a one hundred percent depreciation rate for renewable energy projects after one year.  The blended depreciations free businesses of $184,500 in taxes they would otherwise pay on a one hundred kilowatt solar system.

Low panel prices, state utility rebates, the federal tax grant and the one hundred percent depreciation rate cuts the cost of a one hundred kilowatt solar system from $450,000 to $107,750—only twenty percent of the original price.  A one hundred kilowatt solar system can eliminate forty-five to fifty percent of a small to mid-size business’ electrical usage, which can save them around twenty thousand dollars in the system’s first year.

At a return-on-investment (ROI) rate of around twenty percent a year, the system’s full payback comes four years after purchase.

The United States installed 582.3 mega watts of new, grid-connected solar systems in the first two quarters of 2011—almost double the amount installed in the first two quarters of 2010. (US Solar Market Insight, SEIA)  Many businesses have already taken advantage of the current renewable energy incentive structure that will expire on December 31^st 2011.  We recommend that business owners do not miss the opportunity to take advantage of this ideal investment scenario.

VCU has finished the construction of a 35 kW solar system carport that has an estimated lifetime savings of $610,000. This adds to its 60 kW roof-top solar system built in 2009 that is estimated to save the company $1,070,000 on their electric bills over the next 30 years. The new 144-panel carport system will produce around 49,075 kWh of electricity per year while offsetting 20% of the building’s electric use.

But that is not all.  VCU is also pursuing LEED Gold Level Certification.  They are changing most of their purchasing and cleaning policies to be more sustainable, while applying other energy efficiency measures such as low wattage lighting and better HVAC practices.

Reaching LEED Gold Level Certification will not only be beneficial to the environment, but also save Vons Credit Union significantly in the long run and create a much healthier and comfortable work environment for its employees.

Since 2009, Vaha Sustainable Energy has consulted Vons Credit Union in their green endeavors and supported the company’s goal in becoming a leader in the green movement in Southern California.

US module prices are down 4% from last year to $2.49 per watt, which is about 50% less than they were in 2007.

Manufacturers are still producing more panels than the solar market can absorb, in part due to their hope to take advantage of the anticipated year-end demand caused by the likely end of the United States federal cash grant for solar projects.

The federal cash grant returns 30% of the cost of a solar project to the owner once the project is completed.  Solar projects that are submitted before the end of the year will still warrant the benefits of the grant though.

European module prices also experienced a decrease in prices from last year, dropping 2% to €2.33 per watt.  European feed-in-tariff programs will also be reduced in 2012.

The module cost is around 40% of the total installed cost of a solar system, which explains why steady decline in module prices since 2007 has helped expand the solar market.

With probable cutbacks in federal spending to the renewable energy industry looming,  decreasing module prices are a bright spot in an otherwise uncertain future for solar in 2012.

Read more about SolarBuzz’s report

Sustainable design shouldn’t be seen as an add-on to a building. Whether you are constructing a new building or renovating an existing one, sustainable design is just a combination of choices from a vast amount of building construction or operational options. Just as there are low-cost and high-cost non-green buildings, there are low-cost and high-cost green buildings.

When viewed like this, it’s no wonder why studies have found that there are no significant difference in cost between green buildings and conventional buildings.

This post will answer three questions on this topic: 1. What are the costs to building green? 2. What are the costs to LEED certification? 3. How much do you save on a green building?

What are the costs to building green?

The Davis Langdon’s 2007 study analyzed a total of 221 buildings. Eighty-three buildings were selected that were designed with a goal of meeting some level of the USGBC’s LEED certification. The other 138 projects were buildings of similar program types that did not have a goal of sustainable design. The cost per square foot was compared between all the projects.

Their findings were that the cost per square foot for buildings seeking LEED certification falls into the existing range of costs for buildings of similar program type.

A majority of the buildings studied were able to achieve LEED certification without any additional funding. Others that required additional funding were used for specific sustainable features, such as the installation of a photovoltaic system. With these specific sustainable features, initial costs may be high compared to conventional buildings, but it is more than compensated for over the lifetime of the building in financial returns such as savings in utility bills, increased property values, and increased employee productivity.

What are the costs to LEED certification?

There are initial registration and review fees involved in getting a building LEED certified (more information can be found at GBCI’s website). These are the fees currently posted on their site as of November 16, 2011.

For Existing Buildings:

For New Construction:

Becoming a member also comes with its own fees. More information about that can be found on USGBC’s website.

Getting your building LEED certified does not have to be a large expense if you don’t want it to be. LEED is great in that way because it lets you choose which credits to pursue. This way you can avoid the big-ticket options and stay within your budget. If you are trying to achieve a LEED certification for your building, consider LEED for Existing Buildings: Operations and Maintenance (LEED EB O&M).

Green-buildings.com summarizes a study done by Leonardo Academy where they found that “The average cost per square foot to achieve LEED EB O&M was $1.61.” Among those surveyed,  the majority considered many of the LEED Prerequisites and LEED Credits to be “Low or No Cost”.

For example, some of the prerequisites for EB O&M involve putting up a sign showing the smoking policy of the building, or putting together a policy with your staff on sustainable practices of your building. Many of which can be done without much costs.

How much do you save on a green building?

With green buildings, there may be some high initial costs to such features as: photovoltaic installations, lighting retrofits, HVAC retrofits, or purchases of energy efficient office equipment. These features also come with short paybacks, savings on utility bills, lower operational and maintenance costs, and enhanced occupant health and productivity; all of which are quick returns on your investment.

Local rebates and incentives also help cut those high initial costs if your building qualifies. This means even more savings.

In Capital E’s 2003 report, it found that “minimal increases in upfront costs of about 2% to support green design would, on average, result in life cycle savings of 20% of total construction costs”. In other words, paying a little more now, means tremendous savings over your building’s lifetime.

To read more about the above studies on the financials of green building click on the following:

Davis Langdon’s “The Cost of Green Revisited”

Capital E’s “The Costs and Financial Benefits of Green Buildings”

-  LEED certification will reach 2 billion square feet in 2012.

-  LEED registration domestically and abroad grew 45%, but not as much or as fast as previous years.

-  Market penetration is climbing, with impressive international growth.  LEED registrations rose by 53% overseas.

-  Certifications, the number of projects that complete the ratings process, continue to be less impressive.  They grew by just 3% in the past year.

Despite the mixed results, Rob Watson, founding chairman of LEED Steering Committee and author of the report said in a webcast with GreenBiz.com that the research demonstrates a shift in the green building industry.

“Green building is becoming statistically significant,” he said.  “In the past, we’ve had a hard time proving the business case [for LEED certification].  [Now], if you’re not making more money with your green building, you need a new marketing department.  Similarly, if you’re not getting your green building coming in at zero-cost, or very low single digit extra costs, then you probably need a new design team as well.”

Read more about the LEED Green Building Market and Impact Report

Download the report

“Energy efficiency is the largest, cheapest, safest, and cleanest way to provide energy services, and making investments now in building efficiency will create jobs, save money for consumers and businesses and reduce emission,” said Jason Harke, Vice President, National Policy, U.S Green Building Council- the organization that issued a press release about Capital-E’s report.

With more than 25,000 LEED certified projects, the USGBC is at the forefront of an industry that is projected to contributed $554 billion to the United States GDP from 2009-2013.

Read Capital-E’s report.

Learn more about the USGBC.

According to the Environment California Research & Policy Center, California’s solar market has expanded at a rate of 40% per year.  A record 205 MW of solar were installed in 2011 alone.

California is still far from reaching its full solar capacity though.  The sun exposure in California makes the state an ideal setting for solar, but California’s solar capacity is 17 times less than that of Germany- a country with below average sun exposure.  The National Renewable Energy Laboratory estimates that the state could host more than 80 GW of rooftop solar in total.

Every time a solar panel is installed our dependence on oil, and notably foreign oil, decreases.  California is on its way to providing a safe energy future, but continued federal and state incentives are necessary to support the growth of the renewable energy industries.

Read more by visiting RenewableEnergyFocus.com

However, what most people don’t understand is that solar technology has not changed much in the past 40 years. I believe Ed Begley Jr. (the green guru) explains it best in his book, Ed Begley, Jr.’s Guide to Sustainable Living.

He explains that solar technology has made very little changes since the space program in the 1950s when the photovoltaic technology was first put to major use. In the 1970s, solar technology was put to use in earth-based systems and thought about in a price-to-performance standpoint.

If people have a concern with the technology going obsolete or systems becoming much smaller and driving prices dramatically down in the near future, Ed Begley brings up the crucial point that

“The actual panel is a relatively small part of the equation. Most of the cost and installation of solar is labor, cable, brackets, and fuses. There’s so much that is not about the panels that’s involved in the process, so whatever technological advances might or might not occur at this point are not worth waiting for.”

He even goes on further to say that the solar operating in the satellites from the 1960s is virtually identical to his own solar panels on his roof, which goes to show you that solar panels are durable and are going to be functional for a really long time. If you’re worried about prices falling in the near future, you should know that many existing state solar rebates and incentives decrease over time because they foresee the inevitable drop in cost. So prices for solar may be higher now, but rebates are also the most generous.

Though solar technology hasn’t changed dramatically in the past 40 years, it does not mean new products of the solar industry aren’t being made. Thin film solar, bifacial panels, solar tiles, even solar spray. Technological research is being done to improve efficiency and size; however this research is just that, still in research. It will probably take another 10 to 15 years to get these readily distributed into the mass market. Also, when these new technologies first hit the market, they are going to be incredibly expensive, which brings up Ed’s point: unless you’re willing to wait that long, it’s not worth waiting for.

Solar panels degrade very little over time, they are known to be functional for at least 20 years. And because solar technology does not change all that quickly, if new technologies do come in, it should be fairly easy to “upgrade” your system to fit your electrical needs.

If you are curious as to what technological research is being done on photovoltaics, here are some websites to look into:

www.treehugger.com, www.scientificamerican.com, www.grist.org

Here are the similarities between the two:

• Both apply to Commercial, Industrial, and Agricultural sectors
• Both can be applied to eligible systems of solar, fuel cells, small wind, geothermal, microturbines and CHP

Tax Grants are grants provided by the government and given to your business in the form of a check as a way to incentivize production of renewable energy. Tax Credits are also incentives given to your business in the form of credit towards paying off your yearly taxes. Credits can roll over to the following year if you don’t use them immediately. Credits are good for 5 years before they expire.

Now that you understand the difference between the two, understand that tax grants are going to expire by the end of this year (12/31/11)! So if you want to take advantage of these tax grants you will need to start the project by the end of this year! So act now!

For more information of tax grants and tax credits visit: Dept of State Incentives for Renewables and Efficiency (DSIRE)