Operation Solar Century

The Middle East is churning (for good cause this time) and oil prices are spiking.  What a shocker.  Isn’t this getting old already?  Oil price increases hurt the economy in the US and across the world. It’s effectively a tax hike on all consumers and businesses.  Just search “oil and recession” online and you will find an abundance of information about the correlation between oil price increases and the economic impact.  Here are just a few recent articles:

CBS Money Watch: Oil Prices and Recessions, 40 Years’ Worth
WSJ Article: Rising Oil Prices Raise the Specter of a Double Dip
NYT Times Article: Why the Disruption of Libyan Oil Has Led to a Price Spike

PROBLEM

What impacts economic growth?  Most agree that monetary policy (interest rates) and fiscal policy (taxes) are two of the most critical economic inputs.  Energy prices are probably in the top five.  What’s startling is that we have no control over the supply of such a critical economic input.  Imagine the US Federal Reserve, the entity responsible for setting monetary policy, were controlled by sovereign nations unbeholden to our national interests.  Who would stand for that?  Well this is what’s going on with OPEC.  A group of sovereign nations managing their assets to maximize revenue for their countries controls the price of the most important global commodity, and a top five variable that impacts the economy.  Since the majority of readily available global reserves reside within OPEC borders, its influence will only grow over time if current trends continue.  Furthermore, exogenous events such as revolutions, terrorist attacks and the like continue to pose a stark threat to supply.

Then consider the politics.  The US sends over $200,000,000,000 annually to OPEC.  Where are those funds going?  What type of regimes does this massive transfer of wealth support?  And while we don’t trade directly with Iran, our support of the global oil market enables that nation to sell its production at market rates. On the demand side, rising economic powers such as China and India have a seemingly insatiable appetite for petroleum and this new demand is contributing to surging prices.  We have fierce global competition for this vital resource.

It must be acknowledged that oil is only one component of the vast, complex and interconnected energy landscape.  Electricity is generated from diverse sources (oil continues to be a key fuel for power generation on Long Island).  But all fossil fuels have flaws, including severe environmental repercussions.  Natural gas is the cleanest burning fossil fuel, and increasing domestic supplies have helped keep the price of that fuel low.  Historically its price fluctuations correlated with oil but recently there is a divergence because of new supplies.  However, these new supplies have damaging environmental impact.  Take a look at this excellent piece in the NYT about the environmental challenges of natural gas drilling.

SOLUTION

Every day we grow more confident that implementing renewable energy and energy efficiency solutions is the answer to the energy challenge.

Take solar, our area of expertise.  Solar is a highly effective technology that we believe is going to dominate the 21st century energy landscape.  Today the technology works incredibly well and because of local, state and federal incentives it is a very smart investment to make by homeowners and businesses.

We are able to reduce or virtually eliminate many homeowners’ electric bills with the technology.  Businesses and non-profit organizations are reducing operating costs.  Fueling electric vehicles with solar energy is a home run.

Increased demand is leading to decreasing costs.  Incentives to go solar are still necessary but have been reduced gradually to promote market transformation.  One reason why solar is so promising is that costs should continue to come down over time, and incentives won’t be needed in the future.  Consider electronics such as computers and cell phones that are largely made of the same materials and manufactured in similar fabrication facilities.  Economies of scale have brought these technologies to the masses.

The potential benefits of solar from a macroeconomic point of view are profound.  Prices of this energy technology will come down over time.  Think about that.  Historically, energy prices have been volatile and risen over time, with occasional spikes that lead to economic misery.  Instead we have an energy technology that is going to come down in cost.  Replace uncertainty with certainty and all economic participants stand to benefit.

It is our theory that solar, other renewables, alternative fuels and energy efficiency will lead to dramatic economic growth, and growth in per capital income in the US and across the world.

Call To Action

It’s time to launch Operation Solar Century.  The goal of this operation is to make solar the dominant energy technology of the 21st century through strategic planning, smart policy and leadership.

We are grateful to solar advocates at LIPA, NYSERDA and in state and federal government, and numerous people and organizations for having the vision and determination to get us this far.  Because of these supporters we have a nascent but energized solar industry.

Now we must work together to promote the next generation incentive structure that can drive massive solar growth by providing long term visibility to the industry, and also be smart for ratepayers.  Both objectives can absolutely be achieved with the same policy.  New York has much to gain by taking a leadership role on this issue.  Stay tuned to learn about specific legislation that you can support.

Within time solar will achieve grid parity, at which point it will be competitive with the grid without subsidies.  To get from here to there we need smart policy and political leadership.  Decisions made today will have great consequence for economic well-being of our state, the nation and the world.  With the right leadership, solar will continue to be a wise investment for homeowners and businesses today, and over time will require fewer and fewer incentives to provide the same great economic benefit.

Now we must take the next steps to solidify our gains and make solar the dominant energy technology.

By working together, the 21st century will become known as the Solar Century.



INVERTER RECALL: NON-ISSUE FOR EMPOWERED CLIENTS

Last week LIPA sent a letter to all solar owners on Long Island about a Schneider Electric inverter recall that impacted products under the brand names Xantrex GT, SunPower, and General Electric.

PLEASE NOTE THAT THIS RECALL DOES NOT APPLY TO ANY EQUIPMENT INSTALLED BY EMPOWER               

Rest assured the inverter(s) that EmPower installed at your home or business is in great shape.  The recalled inverters are made by a company called Xantrex that was recently acquired by Schneider Electric.  While Xantrex was once a market leader, EmPower had several bad  experiences with them between 2005 and 2007 and has since never used them.                                                                                                     

Please know that you would certainly receive notice from us right away if a product recall affected your system.

Of course, do not hesitate to contact us if you have any questions.

Thank you as always for your commitment to EmPower and to solar energy.

We are honored to have you as our client.

David G. Schieren
Chief Executive Officer

Call (516) 837-3459 for further information
www.empowerces.com

Keep The Solar Decathlon On The National Mall

It was recently announced that the US Department of Energy’s Solar Decathlon competition would be moved at the last minute from the National Mall in Washington DC to a different location that has yet to be announced.   Since 2002, four Solar Decathlons have been held on the Mall, and the 2011 teams have been planning for over a year to compete at the venue.   See the January 14 New York Times Article for more background information.

As leaders of the Solar Decathlon Alumni Association (SDAA), we are supporting the student led initiative to keep the competition on the Mall.   Towards that end, we are endorsing an online petition created by the students that can be found here: http://www.petition2congress.com/3973/.  We are also directly requesting support from our political representatives.  The current participants are doing an incredible job at generating support.     For example, Senator Menendez of New Jersey has issued a press release in support of this effort: http://menendez.senate.gov/newsroom/press/. 

We believe that the Solar Decathlon competition is vital to the success of clean energy in the United States and all over the world.  It is our position that the National Mall is essential to the competition’s value and prestige.  Students and sponsors from the US and international teams are inspired to compete in such an historic location.  The Solar Decathlon is about inspiring students – the leaders of the next generation, faculty – the educators of future leaders, and entire university communities to embrace renewable energy.

As a former decathletes and a member of the Solar Decathlon Alumni Association, we know first-hand the influence and deep impact of the competition.  Having it at the Mall, the most prominent location in our country, the “front-lawn” of the United States of America, is instrumental to its success. 

For information about this year’s event please visit www.solardecathlon.com.  

David Schieren, CEO

2005 Solar Decathlon NYIT/USMMA Team Leader, 2007 Advisor. 

Gregory Sachs, COO

2005 Solar Decathlon NYIT/USMMA Lead Engineer, 2007 Advisor

Matthew Mathosian, Commercial Project Manager

2007 Solar Decathlon NYIT Lead Architect, 2011 CUNY Advisor

EmPower is the lead sponsor and solar advisor of the 2011 Solar Decathlon CUNY Team

David Schieren Published in Long Island Business News

EmPower’s CEO David Schieren was featured in the Long Island Business News (LIBN) last week.  He wrote an op-ed explaining the benefits of solar energy and why utilities and the government should continue to provide incentives for renewables, at least in the short-term.  You can read the article at LIBN’s website if you have a subscription.  If you don’t have a subscription, the full text of the article is below.

Schieren: Reasons to take a shine to solar power

By David Schieren

Long Island’s and our nation’s current energy paradigms are not sustainable. Every day we buy about $1 billion of oil from other countries, some of which are hostile to America. Every day, air pollution from our fossil-fueled power plants creates serious public health problems, including increased asthma rates, cardiac issues and premature deaths. Every day we wait for BP to plug the Gulf oil leak as we helplessly witness the destruction of wildlife and the livelihoods of thousands of Americans.

A renewable energy economy is the solution. A renewable energy economy will stabilize future energy prices, create jobs and increase domestically supplied energy while decreasing imports. A renewable energy economy will create a more prosperous, healthy and civil world for ourselves and future generations.

Locally, there is a pressing need to bring new energy sources into our power mix. Renewables, including solar energy, are beneficial for all Long Islanders. Solar rebates and tax incentive programs not only benefit those who choose solar energy systems for their homes and businesses, but also are good for all ratepayers. Here’s why:

As grid electricity prices continue to go up because of volatile and increasing fossil fuel prices, solar prices are coming down. Electric bills have consistently increased in recent years while solar costs have decreased at a rate of nearly 4 percent a year since 1998, a trend expected to continue. Many industry experts predict solar energy will achieve “grid parity” (the moment when solar electricity costs the same as traditional electricity) within the next five years. Through net metering, excess solar capacity is sold back to the Long Island Power Authority resulting in significantly lower bills for the solar user and a supply of clean, low-cost power for the other ratepayers. Read more…

EmPower’s Matt Mathosian Featured in Newsday

EmPower’s Commercial Project Manager Matt Mathosian was recently featured in Newsday’s Voices of Long Island.  From the article:

Mathosian, a project manager for EmPower Solar, an Island Park firm behind some of the largest solar-energy projects here, including a recently completed 100 kilowatt project at the Unitarian Universalist Congregation at Shelter Rock in Manhasset.

“The renewable-energy industry has got to sustain itself. Equipment prices are coming down, and we’re getting additional incentives as far as tax credits. We’ll accelerate our business in the sector. Today, I’m in Long Beach. The only thing I see all day are oil tankers. What’s the difference if there are wind turbines in the water? Of course we’d like to see the power plants all shut down, if what the government is striving for is a totally sustainable renewable economy.”

Matt appeared in a special series Newsday ran on called “The Future of Long Island: Energy.”  Check out the other interesting articles which discuss the unique energy challenges Long Island faces and the potential role of solar energy in future energy decisions.