The Benefits of Using Solar Thermal Energy

Solar thermal energy is logical, efficient and economical.  Energy from the sun is our greatest and most abundant natural resource. Harnessing the warmth from the sun to heat our water and our homes is not the wave of the future but the wave of now.

As an installer you know all the in’s and the out’s of a solar thermal system, but your homeowner needs the simplicity and beauty of it broken down.  Such as:  A solar thermal hot water system is relatively simple in how it works.  The sun’s energy is used to heat fluid in a solar panel collector.  This fluid is then able to transfer the heat into the hot water tank. This simple description gives a basic understanding but the mechanics of it are both interesting and kind of genius and your homeowner benefits from knowing this too: When there is enough heat to be drawn out of the solar collectors a controller activates a pump.  This pump then takes the heated solar fluid through a heat exchanger where the heat is then transferred to the water in the storage tank.  The process then completes the cycle by pumping the solar fluid back up to the collector so that it can once again be heated and start the process all over again.

Here is a breakdown of the benefits to using Solar Thermal Energy. It gives us more energy independence, meaning it reduces our dependence on fossil fuels and the import of these fuels.  It also gives us relief from the volatility of fluctuating energy prices. Environmentally, it reduces our carbon footprint by using a clean resource which does not put toxins out into our environment or contribute to global climate change.  Solar Thermal Energy systems are also very low maintenance; there are very few moving parts.

The economic benefits to using Solar Thermal Energy are what really put it over the top as a “must have” for all homes.  For a relatively small upfront cost there is a fast return on investment.  For instance, in the state of Massachusetts, a system that costs $9,000 is entitled to a federal tax credit of 30%, which reduces the cost by $2,700. The state credit is 15% which reduces the cost by another $1,000.  There is also a State CEC Residential Rebate of up to $3500 depending on the energy output of the collectors. For a standard 2 panel system this would equate to about $1300, which nets in a real cost of $4,000 for the purchase of the system. In some states there is also a utility rebate. A solar thermal system can save an average family of four anywhere from $500-$1,000 a year on their electric bill.  A system will pay for itself in 4 – 6 year’s time.

The life-cycle of a solar thermal system is at least 25 years.  Well maintained it can last 30-35 years. It is important to buy a system that is certified by the Solar Rating & Certification Corporation (SRCC) which is an independent third-party certification organization.  Buying a SRCC certified system is important not only for safety but to be eligible for any tax credits or rebates.

When presented in full, a solar thermal energy system sells itself.  Hopefully this homemaker friendly breakdown will make your next install a more collaborative experience for both you and your homeowner.  Choosing  to harness the energy of this most abundant natural resource, the sun, and making it work for everyone is what Renewable Sales is all about.

U.S. Trade Ruling on Chinese Solar Imports

The U.S. Department of Commerce issued a preliminary finding Tuesday stating that Chinese state sponsorship of its solar industry is anti-competitive under U.S. & International trade law.  The DOC will require importers of record to post deposits or bonds toward anti-subsidy margins of 2.9 percent for cells and panels made by Suntech, 4.73 percent for Trina Solar and 3.59 percent for all other Chinese manufacturers.

“If fair international trade can be re-established, the solar pioneering U.S. industry will once again compete on legitimate market factors such as product performance, production efficiency and unsubsidized pricing” said Gordon Binser, president of SolarWorld Industries American Inc.  SolarWorld Industries is a member of the seven-manufacturer Coalition for American Solar Manufacturing (CASM) and a petitioner in the anti-subsidy and anti-dumping cases against the Chinese industry.

Imposing import tariffs on Chinese solar panels should benefit the U.S. solar module manufacturing industry.  Reducing the impact of cheaper Chinese prices should not only slow the price drop but also stabilize profit margins for U.S. manufacturers.  These U.S. tariffs would also help manufacturers in other countries who export to the United States and compete for U.S. market share.

One possible response by Chinese manufacturers would be to shift production to the United States or other overseas markets where the tariffs would no longer apply.  In this case, they would be back in the market before long.  Though they would either be investing in the U.S. or other countries where trade standards are more comparable. One Chinese owned company, Suntech, already has a U.S. presence.  They opened a manufacturing facility in Arizona in 2010.

Renewable Sales will keep you updated about the upcoming preliminary hearing on anti-dumping (AD) duties that is expected to take place on May 16th with the announcement being made on the 17th.  Final determinations on the duties would likely take place in the summer with the whole case due to be wrapped up in the fall.

Preliminary Findings in CVD/AD Tariff Cases Due to be Announced

The possibility of imposing CVD and AD tariffs against the import of Chinese PV Products is a buzz worthy topic in the Solar Industry right now.  For investigative purposes The Department of Commerce (DOC) describes Anti-dumping(AD) as occurring “when a foreign company sells a product in the United States at less than fair value.” Countervailing Duty(CVD) is described as “subsidies and financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.”

Solar World Industries America Inc. along with six anonymous US module manufacturers petitioned for these investigations which were initiated in November of last year.  The US Federal Trade Panel determined in December that the US Solar Industry “was materially injured by imports of solar cells from China.”  The US imported nearly 1.2 billion US dollars worth of solar cells from China in 2010 according to the US International Trade Commission(USITC).  The complaints about China came after the solar panel company Solyndra had to file for bankruptcy and cited China as a key reason.  Solyndra was not the only solar company to go bankrupt in 2011.  Evergreen Solar, Stirling Energy Systems, and SpectraWatt Inc. also went out of business with many insiders pointing to the cheaper Chinese imports as having some culpability in these companies not being able to compete.

This a complex issue in that imposing these tariffs on Chinese PV imports will not benefit all and will be difficult for some stakeholders in the US market. Some argue that Chinese imports helped consumers and promoted rapid growth in the industry.  They fear that the tensions produced from these tariffs could spark a trade war with China and raise prices for the entire industry, however, without the tariffs the Chinese could continue to undercut the market leading to a monopoly.

The DOC is due to announce their preliminary findings in the Countervailing Duty(CVD) petition on March 20^th though the target date for the preliminary findings for Anti-Dumping(AD) petition has been delayed until May 17^th.  The final ruling can take up to a year from the original filing.  Reports have stated that if these tariffs are put into place, due to the high volume of imports over the last few months, they will be retroactive back to December 3, 2011.

At Renewable Sales we believe in American made products and supporting our economy but just as strongly we believe in the growth of the Solar Industry by providing the best products at the best prices.   Whatever the decision, these petitions will have an impact on the American photovoltaic market.  We will follow-up on these important  industry findings once announcements have been made.

Zero Energy America House

PBS is working on the documentary Zero Energy America.  Zero Energy Homes are designed to operate using net zero grid energy ultimately leading the homeowners to a life without power bills.

Zero Energy America is being spearheaded by the combined efforts of Blue Water Media and nationally recognized Green Home builder Marc Rutenberg of Marc Rutenberg Homes.  The plan is to build four zero energy homes using ideas and products meant to change the industry.  The homes are designed to exceed the highest green building standards.  The Zero Energy America website describes the project as “making headlines as industry leaders, building science and most of all dedicated people come together to promote sustainable change in the industry taking the “how to” out of the lab and into the field.”  The goal is to not only advance the green building industry but on a larger scale to educate the nation on the importance and viability of these sustainable practices.

The first home being built is in Tampa, Fl. and American Choice Solar Panels is one of the sponsors. I have been involved in the project over the past six months or so.  Last September the PBS crew came down to our manufacturing plant in Texas to film a segment and then I was able to go on site to the home in Tampa last Monday to film the installation of the PV modules. 

The Zero Energy America project’s Site #1 is located in Palm Harbor Florida in an upscale gated sub division called Hawks Landing.  The home is valued at approximately $1.6 Million. While still under construction the home is about 60 percent complete with walls, floors, and roof complete. Interior finishes were being applied while I was there.  At approx. 4500 square feet with 12 foot ceilings, in-ground pool and several more amenities, this house is probably the most upscale one I have seen solar installed on. The back of the home faces due South and is ideal for the PV array installation. This Florida home has Spanish barrel style red clay tiles for a roofing surface. Therefore the mounting rail for the array is attached to 7 inch aluminum standoffs that are lagged to the sub-surface sheathing and rise above the apex of the barrel tile. The rail was installed and then the American Choice 250 watt Black framed PV modules were set in place. 

Three more Zero Energy America homes will include the American Choice PV modules. Two of the houses may actually incorporate the new American Choice Frameless PV module. The ACS-250F carries forward the beautiful aesthetics of the Black on Black color scheme of the PV module by reducing the apparent thickness of the module from the 2 inches found in the framed version to about ½ inch. For more information visit http://www.americanchoicesolar.com/.

We’ll be at the NESEA Building Energy and Conference Tradeshow in Boston March 6-8. 

Municipalities forge ahead to create renewable energy strategies

As the price of oil continues to raise and the new unrest in Egypt puts further price pressure on this fossil fuel,  I can’t help thinking that the discussion for renewable energy sources won’t start creeping back into our regular lexicon.

Over the last month, the Patrick Administration has struggled to find some answers to the Evergreen Solar dilemma, while providing incentives to homeowners for solar thermal through the Massachusetts  Clean Energy Center(MassCEC).  This juxtaposition surely has consumers scratching their heads.

While the consumer may not know where to hang their hat, there are 41 municipal electric utilities, who are working with consultants to create renewable energy strategies.  One such community is Concord.  Concord’s plan as four components.  It is that community’s goal to generate 30% of its energy needs through renewable source by 2020.  Ambition, yes, but it is a start.  There are various Federal and State incentives to help bring the cost of renewable energy more in line with those of traditional fossil fuels.

Other example of a municipality getting serious about the renewable energy goals is Springfield,  MA.  Springfield is working with the Western Massachusetts Electric Co. to build a 4.2 megawatt solar farm on a capped landfill.  This project will be the state’s largest project to date with 17,000 solar panels.   The use of capped landfills for solar arrays makes a great deal of sense for cities and towns because this is difficult land to develop and it can bring additional dollars into the community.

Over the last two years, we have been lulled into a false sense of reality about oil prices and now that the economy is starting to find some stable footing, those prices are going to up and we need to get serious about our dependence on fossil fuels.  Municipalities are leading by example, let’s hope that their good work carries over to the homeowners.