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Fort Worth Business Journal - 2010-02-15

Bill, funding could heat up solar power use in Texas (new window)

Two congressmen unveiled proposed legislation that encourages the installation of 10 million solar systems on the roofs of homes and businesses during the next decade, which could help Texas launch an energy industry that to date has lagged behind others.

Sen. Bernie Sanders, I-Vt., and Rep. Steve Cohen, D-Tenn., proposed a bill that would mimic rebate programs in California and New Jersey, the No. 1 and No. 2 states, respectively, in installed solar photovoltaic systems, that could cover up to half the cost of a solar photovoltaic system or solar water heating system.

“A dramatic expansion of solar power is a clean and economical way to help break our dependence on foreign oil, reduce greenhouse gas emissions that cause global warming, improve our geopolitical position, and create good-paying green jobs,” Sanders said in a statement.

The bills call for the installation of 10 million solar photovoltaic systems and 200,000 solar water heating systems by providing assistance for interested businesses, homeowners and government bodies. The idea is by providing incentives to reduce costs, the United States, which ranks fourth in installed solar capacity, behind Germany, Spain and Japan, can increase its solar power use.

Untapped potential

In addition to its strengths in oil, gas and nuclear energy, Texas consistently has been ranked No. 1 in nationwide installed wind power, according to the American Wind Energy Association; however, the state, despite boasting a plethora of sunny days, doesn’t rank in the top 10 states generating the most power from the sun, according to the Interstate Renewable Energy Council. Part of that reason stems from inability to pass solar-friendly legislation. For example, efforts in the 81st Legislature last year failed, preventing $500 million from being allocated for solar rebates.

The most-concentrated parts of the country for solar energy potential are southern California, southern Nevada, Arizona, New Mexico and far west Texas. Texas ranges between about 2 kilowatt-hours per meter squared per day in December and 8 kWh/m2 /day in July – ample energy potential – while No. 2 New Jersey, for example, is slightly less at an average of about 4.5 kWh/m2 /day, according to the U.S. Department of Energy’s National Renewable Energy Laboratory.

Environment Texas, based in Austin, is an environmental advocacy organization that recently urged Gov. Rick Perry and the Public Utility Commission to support policies that would encourage increased solar energy use. The group’s director, Luke Metzger, said the Sanders-Cohen solar bill would benefit the state.

“It would do a lot to spur a solar industry in Texas,” Metzger said. “We clearly have some of the best solar-radiation potential in the nation and some of the best manufacturers in Texas.”

Of note: In Pasadena, Texas, MEMC Pasadena Inc. is one of the largest producers of solar-grade silicon. Entech Solar Inc. and Exeltech are two Fort Worth-based manufacturers of solar panel components. Barr Fabrication, of Brownwood, produces structural support steel for utility-scale projects. And last year, Oncor launched a solar-rebate program to help some consumers with solar panel installations.

Government assistance on the upswing

Last month, Department of Energy Secretary Steven Chu announced the NREL would invest $12 million to support the development of early-stage solar-energy technologies, with three projects in California and a fourth in North Carolina.

“Only recently now has government invested in solar and given it the support that other energy technologies get,” Metzger said.

Brad Collins is executive director of the American Solar Energy Society, comprised of industry professionals, and publisher of SOLARTODAY magazine.

“Like any initiative at the federal or state level, if you can produce markets through legislation you’re going to help industry and lower costs for future consumers,” Collins said. He added of the Sanders-Cohen proposal, “It isn’t the only thing that can be done, but every incremental step in creating a more positive and economically feasible market is a plus for the U.S.”

According to ASES research, every $1 invested in renewable energy initiatives will yield two and a half times more jobs than the same dollar invested in oil and gas – “A bigger bang for your buck,” Collins said.

The Solar Energy Industries Association also supports the Sanders-Cohen proposal, saying its passage “would create the world’s largest market” and “bring with it tens of thousands of manufacturing and installation jobs in all 50 states,” said Rhone Resch, the organization’s president and CEO, in a statement. As a result of the American Recovery and Reinvestment Act, solar installations grew by 40 percent and created almost 20,000 jobs in 2009. Separately, Resch also commended the Obama Administration’s 22 percent increase in solar spending for the 2011 budget.

As for whether solar power’s use will expand in Texas, which has been slow to act on the energy resource, Metzger said one just has to look at the progress wind energy has made in Texas.

“Ten years ago we had hardly any wind installed and now we lead the nation. If we were a country we’d be fourth in terms of wind installed,” he said.

Others agree.

In the November-December 2009 issue of Collins’ magazine, the feature article, “Texas: The Next Solar Superpower?,” written by a University of Texas at Austin engineering professor and his student, outlines the powerful future solar energy could play in the state due to ample solar radiation, plenty of businesses and the fact that Texas has its own power grid.

Another positive sign: Next week, the city of Austin hosts the Renewable Energy World Conference & Expo 2010.