City to build solar project
The City of Ashland is launching a new solar project as part of a nationwide movement to invest millions of dollars in renewable energy. In 2006, the federal government offered $800 million in Clean Renewable Energy Bonds to governments and nonprofit utilities.
The city received authority to issue $500,000 worth of the bonds to pay for solar panels.
 |
| The City of Ashland Civic Center is an example of renewable energy used in Ashland. Orville Hector | Daily Tidings |
Residents will be asked if they want to buy shares of the new solar system. The payments for the shares will be used to pay back the interest-free bonds. In return, residents who volunteer to take part in the program will receive credits on their electric bills for the energy their shares of the solar panels produce.
Some residents don't have enough money to put up full solar systems on their homes, while others don't have good sun exposure, said Director of Electric Utilities Dick Wanderscheid.
"This would allow people to own a share of the system," he said. "I think there's an appetite from citizens and businesses to invest in this."
The solar project will be about 60 kilowatts, which is enough to power about 9.6 homes for 30 years, Wanderscheid said.
The city will seek bids for 50, 60, 70 and 80 kilowatt systems. The panels could be installed as soon as April or May on two city buildings behind The Grove and the Ashland Police Department on East Main Street, he said.
The Ashland City Council, which unanimously gave the go-ahead for pursuing the project, will review and authorize any contract.
The city's investment comes as the demand for solar systems is booming around the nation and world.
A perfect storm
For the past decade, the solar industry has had an annual growth rate of 30 to 50 percent, said Jeff Wolfe, CEO for Vermont-based groSolar, one of North America's leading distributors of alternative energy systems.
That already-high growth rate is accelerating as the solar industry faces a "perfect storm" that is pushing demand, he said.
Three factors are at play: high energy prices, war and instability in the Middle East and growing awareness of global warming, Wolfe said.
Even if energy prices fall, turmoil in the Middle East and global warming remain as long-term problems, he said.
"There's a huge security issue worldwide that's not going to go away anytime soon. People are finally waking up to the global warming threat.. There's a cultural awareness that we need other solutions. We need to look into renewables," Wolfe said.
He said that Japan is the number one user of solar systems, followed by Germany and then the United States. Uncertainty remains about whether China, with its rapid economic growth, will become a major solar consumer and strain supplies. On the production side, China does have many start-up solar companies and is the world's largest manufacturer of solar hot water systems. Strong demand for solar panels has led to investment in plants that produce polysilicon just for the solar industry, Wolfe said.
Previously, solar manufacturers bought silicon that was rejected by the computer industry. Silicon for solar panels doesn't have to be as pure as that used for computers, Wanderscheid said.
Wolfe said high demand for solar systems led to a 20 percent price increase for solar modules in 2004. However, the cost for other components and installation went down, so the overall system price increase was not that high. Prices are stabilizing now or dropping slightly, he said.
The City of Ashland helps residents and businesses that want to put up their own solar systems.
Wanderscheid said he has not seen prices any higher than they were in 2000.
Past response positive
The city of Ashland is not entering uncharted territory with its latest solar project.
In 2000, the city, Avista, the Bonneville Power Administration, the BPA Foundation, the Oregon Shakespeare Festival and Southern Oregon University spent about $300,000 on a solar system of about 30 kilowatts, Wanderscheid said.
At the time it was built, the solar system was the largest of its kind in the Northwest.
About 300 people and businesses signed up to pay at least $4 per month on their utility bills to support that project. With the money, the city is on track to hit its goal of buying $30,000 worth of solar output from the solar panels at OSF and SOU, Wanderscheid said.
Raising $500,000 from volunteer participants for the new solar system is a bigger challenge, but Wanderscheid said there is a key difference from the 2000 solar project.
For the earlier project, residents and businesses did not get anything for their money — other than the knowledge that they were supporting renewable energy.
This time, they will receive credits on their electric bills, he said.
Under the worst case scenario, if no one volunteers, the city electric department will have to pay $50,000 annually for 10 years to pay back the bonds. The city already spends about $600,000 per year on renewable energy and conservation efforts, Wanderscheid said.
The success of this solar project will probably determine whether the city builds another solar system in the future, he said.
Across the nation, requests for a share of the $800 million in Clean Renewable Energy Bonds exceeded the amount available. The federal government will offer another $300 million in bonds next year, Wanderscheid said.
Meanwhile, the solar industry is working to get more bonds authorized and to convince Congress to extend a federal tax credit for solar systems for eight more years beyond a 2008 sunset date, Wolfe said.
"The bonds and a significant credit will push the solar industry even farther and harder than it has been pushed," he said.
Staff writer Vickie Aldous can be reached at 479-8199 or vlaldous@yahoo.com. To post an on-line comment, visit www.dailytidings.com.
