Floridians Are Demanding Renewable Energy

The Florida Public Service Commission (PSC) released statistics early last week showing that 1,590 customers owned renewable energy systems in 2009, a three fold increase from 2008.  A majority of the systems were solar photovoltaic panels though notably there were eight customers with wind turbines and one with an anaerobic digester.  For an example of anaerobic digestion being used in FL, check out Sigarca's project in Ocala, FL.  In total, FL customers contributed 13 MW of renewable energy to the state in 2009, a small number at first but a relatively large jump from 2008.  The PSC cites policy as the main reason why more customers are buying into renewable power, including net metering programs and expedited interconnection agreements with Florida utilities.
  

The study didn't cite which cities and counties most of the projects are based.  This would be valuable information to understand which local policies are more effective at encouraging renewable energy system installation.  Another factor the PSC failed to mention was the influence of state subsidies on the purchase of solar panels.  We will have to wait for 2010 statistics to see if numbers change without solar incentives.  The recent PACE legislation (HB 7179) passed by Florida in late May will not have any effect on renewable energy systems this year.   While many cities and counties are interested in establishing energy loan programs, many are not likely to launch until late 2010 or early 2011.

The Dawn of an Energy Efficient Florida

Are your energy bills off the charts? Can't afford those new solar panels for your home? Florida's newest law will give you the tools to do something about it.

Last week, Florida Governor Charlie Crist signed HB 7179 into law, making Florida the latest state to authorize Property Assessed Clean Energy or PACE.   Under HB 7179, property owners can apply for funding and enter into financing agreements with local governments to finance energy and hurricane hardening improvements.  The local government has permission to collect the borrowed funds from property owners through non-ad valorem assessments.  The financing mechanism removes the upfront costs for property owners to invest in improvements that can reduce energy and insurance costs.

These improvements fall into three categories and apply to residential, commercial and industrial properties:

1. Energy Efficiency Improvements
2. Renewable Energy Systems
3. Wind Resistance Improvements  

The bill passed through the House and Senate with little opposition and opens up the potential for many Florida cities and counties to launch energy finance programs.  A program offers benefits across many diverse groups:

1) Local government: Mechanism to create jobs in the construction industry and meet sustainability objectives without commiting general fund dollars on an ongoing basis.

2) Property Owners: Potential increase in cash flow as a result of energy savings and lowers risk by hedging against rising energy prices.

3) Utilities: Tool to achieve demand side management goals and reduce emissions.

4) Contractors: Increased market demand for services, increase in revenue and ensures a reliable payment source.

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San Francisco launches nation's largest PACE program

San Francisco is following Berkeley's lead and will launch the biggest PACE program in the nation (article).  Beginning on March 1, 2010, a total of $150 million in loans will be made available to the city's property owners for energy efficiency, renewable energy, and water conservation improvements. This program expands upon the Berkeley PACE program, a pilot study in 2008 that dedicated $1.5 million in loans for solar panel installations.

For the program to really work in San Francisco, it will have to prioritize energy efficiency improvements before renewable energy projects.  What's the benefit of generating renewable energy when your HVAC system is old and inefficient, your windows have leaks, and your house lacks insulation?  The energy produced and the cost savings generated will be quickly lost.

Ultimately, these energy efficiency retrofits are more economical and have a far quicker payback than renewable energy technologies.   Dr. Jones really hit on this critical point in his last post when he said municipalities need to focus on those high impact retrofits that pay dividends quickly.  Setting up a system that focuses on the quick paybacks has the added bonus of encouraging more property owners to participate in the program, which  results in more energy reduction.  The way I look at it is...every kilowatt we can save is a step in the right direction.