Michelle LaBrosse, PMP

Connecticut ranks number one in adopting energy efficiency policies and incentives.

I have been in Connecticut the past two months expanding the markets for Cheetah Power. It’s been an exciting ride and we landed a huge opportunity to organize the Green Pavilion for the NBC Health and Wellness Festival October 16th and 17th at the Hartford Convention Center.

What has been especially exciting is seeing how well Connecticut is doing with respect to setting energy policies and incentives to help individuals and businesses adopt more energy efficient practices. In a recent report issued by the Center for American Progress, shows that Connecticut ranks number one nationwide in adopting progressive measures for energy efficiency.

At Cheetah Power, we don’t just talk sustainability, we live sustainability.   We took the Connecticut corporate retreat center property and have installed a 6kw solar photovoltaic system (we received a $9000 credit from the State of Connecticut to install the system and a 30% tax rebate from the Federal Government reducing the cost to install the system by over 40%).   We reduced the energy consumption of this property by converting the electric hot water tank to instant on propane water heaters.  Replaced the 25 year old air conditioners with high efficiency air conditioners.   Removed an old hot tub that was not being used but had been kept running so it wouldn’t be damaged.   Replaced an aging pump on the pool filter that was drawing far too much electricity than needed to work at less than optimal performance. We replaced the light bulbs with compact florescent bulbs and LED lights (where they made the most sense to use) and put all the systems that were on continually on easy to turn off power strips to turn off when not needed (reduced phantom power loads). In the summer time, when the electrical consumption was the highest on this property, the bills have decreased by 3/4 with these measures in place.

We are also installing sealed gas fireplaces in the two fireplaces that currently exist for the most part to just suck warm air out their stacks in the winter, have a weatherization maintenance plan in place and expect to reduce the heating costs by at least 30%.

Additionally to improve the properties overall sustainability and to increase our contribution to the community’s sustainability, we planted a garden that grows the produce used at the corporate retreat events, and are planning on orchard to contribute to the local CSA’s.

Michelle LaBrosse, PMP

Wind Power in Rural Alaska

I have been doing a wind feasibility study on a property in Alaska since April for a small 5kw wind mill I want to install for basic home use.   I have another piece of property that could be a potential location for small community wind farm.   After studying what else is going on in Alaska and talking with folks in the power industry up here, it appears the largest impediment to these small rural Alaskan wind farms is not the funding as the state has already approved $50 million in funding per year, but it is the land that needs to be set aside to create the wind farm.  Well that problem is solved in my location, because I own it.   So, now it’s onto evaluating the feasibility of that location for wind power.  

Here are some links I’ve been studying to get smarter on a community wind farm in rural alaska:

1. The American Wind Energy Association (AWEA) Economics of Wind Power Report - Feb. 2005

2.  The Annual Report on US Wind Power Installation, Cost, and Performance Trends, 2006. 

It doesn’t appear there has been another “annual” report issued by the Department of Energy. 

3.  State of Alaska calls for more rural wind farms - Jan. 28, 2009 - Anchorage Daily News

Some key points:

• AK plans to spend $100 million on wind farms to bring down rural electric rates that are being driven up by the price of diesel for diesel generators.  
• Reduction in the price of electricity is 15% from the wind energy projects.
• Alaska Energy Authority is slated to spend $50 million per year in renewable energy projects around the state. 
• Getting permission to use the land and the building permits appears to hold up the process for many of these rural wind farms.
• The existing wind farms have reduced the use of diesel generated electricity by up to 50,000 gallons per year.

I’m working on the hook up of a solar energy system on a property in Connecticut and a wind power system in Alaska.   In Connecticut, the utility company by law has to purchase back any excess power a consumer creates with an alternative energy system.  The company GroSolar that is handling the installation, takes care of setting up the bi-directional metering as part of their installation.  It truly is simple and a turn key system.

In Alaska, they are a bit behind with complying with federal laws.   And it’s not nearly as simple (isn’t this why people choose to live in Alaska anyhow - because of the challenges of day to day life in the last frontier - I guess this includes bureaucratic challenges too).   With my local utility company in Southeast Alaska to purchase back power, I was told I would have to set up my own utility company.   The larger utility company in Alaska - Golden Valley Electric has an incentive program for renewable energy development.   But it really doesn’t look like something anyone would want to do - for as they say on their website - “The producers of renewable power do not keep any of the power they produce.”   Wow - where is the power to the people with that policy?

So just how does a utility company buy back power?  According to the Department of Energy’s Website - http://www.energysavers.gov/your_home/electricity/index.cfm/mytopic=10600?print - they can either set up two meters with one that measures the energy you consume and the other one that measures the energy you produce.  I think this is a very old post as most utility companies now use Bi-directional meters.  Additionally this article references a 1978 law - The Public Utility Regulatory Policy Act of 1978 (PURPA) requires power providers to purchase excess power from grid-connected small renewable energy systems at a rate equal to what it costs the power provider to produce the power itself.

There was further national legislation passed in 2005 with the Energy Policy Act of 2005 that Requires all public electric utilities to offer net metering on request to their customers.  According to this law, ‘‘(11) NET METERING.—Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term ‘net metering service’ means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.

I guess there are all types of ways to enact this legislation that is very unfavorable to the renewable energy producer as demonstrated by the State of Alaska.  Furthermore, most of the net-metering laws are manipulated by the local utility companies to be in their favor ranging from the extreme policies of Golden Valley Electric where you cannot even use any of the power you create to the policy where the utility can company purchase the power from the renewable energy system at the lowest wholesale rate, but when you are using the power from their system, you are paying the prevailing retail rate all the way to Colorado’s policy that you get credited at the “avoided” cost rate - which is the prevailing retail rate for which you are avoiding.   What is interesting is how these utility companies attempt to manipulate the end user.  I was told by my local utility company at first that the reason that their utility could not do a bi-directional meter was because it would damage their grid.   Upon further inquires, I was told that yes it was possible, and they were in fact now doing it with other people - but that if I wanted to get a rebate, I’d have to set up my own utility company.

Here is a website that explains the net metering policy by state - http://apps3.eere.energy.gov/greenpower/markets/netmetering.shtml.   We summarized the policies in a previous post - http://www.cheetahpower.net/incentives/

Most states with more legislative power over the utility companies credit rates with renewable energy system at the retail rate or the “avoided cost” rate.  But they do not rebate the cost savings.  If at the end of the year, you have credits, the utility company absorbs those credits.   Colorado is the exception and the cost savings are rebated to the consumer for the “avoided” cost rate.  Kentucky does not have a end of the year credit grabbing policy like most other states.   In Connecticut, the rates are credited at the retail rates, but if you have a credit at the end of the year, that credit is absorbed by the utility company.

Rather amazing.

So the moral of the story here - make sure that you have strong consumer advocates at the legislative level who understand the nuances of electric metering.

There are a wide variety of financial incentives available to homeowners to aid in the conversion to a more self-sufficient lifestyle. Below are the top four states in terms of the amount of financial incentives offered to homeowners. The rest of the states’ incentives can be found on when clicking on the picture below.

Click on the above picture to see all the States' Financial Incentives

Below describes each of the different homeowner financial incentives that are featured in the above chart.

Tax Incentives

• Corporate Tax Incentives: These include corporate tax credits, deductions, and exemptions. This can apply to residential sectors as well as commercial in a few special cases, such as in South Carolina where they have a Solar Energy Tax Credit that allows taxpayers to claim a credit of 25% of the cost of installing a solar-energy in any building owned by the taxpayer.
• Personal Tax Incentives: These include personal income tax credits and deductions, and are used as a tool to offset the cost of purchasing and installing energy efficient equipment in your home. This type of incentive usually has a maximum monetary amount of the deduction or credit.
• Property Tax Incentives: Include exemptions, exclusions, and credits. A vast majority of these types of incentives ensure that the added value obtained by implementing a renewable energy system is not included in the valuation of the property for taxation purposes.
• Sales Tax Incentives: This type of incentive provides an exemption from the state sales tax for buying energy-efficient appliances, a renewable energy system, and other items related to reducing use and increasing efficiency in the home. Some states have established a “sales tax holiday”, where a sales tax exemption for renewable energy items is available for a few days out of the year, giving consumers a push to purchase these items in a set time frame.

Loans

Loans provide financing needed to buy energy efficient or renewable energy systems and equipment. Loan terms are usually 10 years or less, and they are usually offered with very low-interest rates to cover a wide variety of energy efficient projects.

Rebates

Rebate Programs provide money after the fact to support and promote the installation of energy efficient projects. Rebate Programs are usually administered by utilities (municipal utilities and electric cooperatives, but can also be administered by the state.

Grants

Grant Programs: This type of incentive is offered by states to supports the development and use of energy efficient projects and renewable energy technologies. These incentives vary greatly from program to program. Some offer financial support for a wide range of areas related to alternative energy, while others or more specific and may offer funding for projects utilizing a specific type of technology. While grants are primarily available to commercial, industrial, utility, education, and government sectors, there are some available for the residential sector, which is illustrated in the table.

Other Incentives

• Green Building Incentives: These incentives are used to promote the creations of green building, which are building that are designed to minimize harmful impact on the environment. These incentives commonly come in the form of a reduction or waiver in building permit fees. The Leadership in Energy and Environmental Design (LEED) is a well-known program to certify energy efficient building.
• Leasing/Lease Purchase Programs: This incentive allows customers to lease an alternative energy generation device (i.e. photovoltaic system) from their local utility. This is done primarily for customers in remote areas, where the cost of extending traditional forms of electric distribution lines would be too expensive to be feasible. Some programs have the option for the customer to then purchase the system after a specified amount of time.
• Production Incentives: This incentive provides payments based on the amount of kilowatt-hours a renewable energy system generates. These are also known as performance based incentives.
• Utility Rate Discounts: This incentive can be offered by utility companies to encourage household energy efficiency. They are provided for households that meet a certain energy efficient rating (the Energy Star Program is well known for this), and in meeting those requirements the owner is awarded a discount on each month’s electricity bill.

The Keynote Roundtable of the Renewable Energy Conference was a who’s who of the trade associations in each of the renewable energy field domains.

Ms. Denise Bode
CEO
American Wind Energy Association

Mr. Douglas Durante
Executive Director
Clean Fuels Development Coalition

Mr. Karl Gawell
Executive Director
Geothermal Energy Association

Ms. Linda Church-Ciocci
Executive Director
National Hydropower Association

Ms. Julia Hamm
Executive Director
Solar Electric Power Association

Mr. Rhone Resch
President & CEO
Solar Energy Industries Association

Mr. Edwin F. Feo
Partner
Milbank Tweed Hadley & McCloy LLP

It also included the Keynote Speaker -
Mr. Roberto Denis
Senior VP Energy Supply
NV Energy

I captured the insights of the distinguished panel on twitter as it was occurring. They were asked questions by the moderator regarding the state of affairs in each of their respective industries and where they say the biggest challenges are. They opened the discussion up to the audience but didn’t allow for but several questions. The interchange between the panel on issues regarding government policies and the challenges with respect to distribution was interesting and deserved far more treatment than could be accorded in a short hour panel discussion.

What emerged for me was the realization that this field needs very strong coordinating leadership. It left me wondering why there was not representation by the leaders of the Department of Energy on the panel. Coordinating the development and distribution of the renewable energy nationwide is a matter of national security and needs to be guided and controlled by the federal government with innovative, visionary and stringent standards. It cannot and should not be left to each of the renewable energy specialties or the vendors. Yes these folks need a place at the table but they lack the vision of an integrated whole to address the challenges facing nation states for the national security issues with our long term energy policy.

Renewable Energy Keynote Panel Participant - Mr. Edwin F. Feo Partner Milbank Tweed Hadley & McCloy LLP

You can see the stream of comments on each of the individuals at http://twitter.com/michellecheetah. Their perspectives are interesting. For example: Rhone Resch
President & CEO of Solar Energy Industries Association said that it all it took to become a solar installer was to hang out your shingle. I would recommend that Mr. Resch go try to do just that and see how far he gets with becoming a solar panel installer. It is a bit more complicated and regulated than that (and thank god). Another interesting comment by Mr. Edwin F. Feo, Partner, Milbank Tweed Hadley & McCloy LLP emphasized that the reason why utility companies wanted to adopt renewable energy projects was to justify rate increases so they could improve their profitability. (YES, I knew I was on track with my reasons for wanting to become energy self-sufficient as a way to hedge against utility rate increases). Ms. Linda Church-Ciocci, Executive Director of National Hydropower Association may have provided some of the most educational comments regarding how investment tax credits are more important than production tax credits as if you don’t have capital to even do these projects, you won’t get the benefits of the production tax credits because there won’t be any production. Ms. Denise Bode, the CEO of American Wind Energy Association, pointed out that in the next five years, there are wind power projects that will exceed our current wind energy production by five times. She also stated that America was now the number one producer of wind generated electricity. Mr. Douglas Durante, the Executive Director of the Clean Fuels Development Coalition said his industry was in the process of revising some mistakes they made in policy legislation that was ill conceived at the time. He didn’t further elaborate but counseled his peers on the panel to be more far sighted in their legislative policy making. Mr. Karl Gawell, the Executive Director of the Geothermal Energy Association, pointed out that over half the cost of using geothermal energy was in drilling yet most people focus the investment dollars on creating the production factory. Ms. Julia Hamm, the Executive Director of the Solar Electric Power Association pointed out that Utility companies have large percentage of their workforces near retirement. Her comment left me wondering if the new green jobs be able to meet work requirements of managing the energy needs of the country.

At times, I wonder if pursuing my own agenda of becoming energy self-sufficient is a selfish thing to be considering. Shouldn’t I be concerned with the greater good and be putting my time and talent to helping all of us become energy self-sufficient? Well the answer to that question is - YES I am very concerned about the greater good and I KNOW that because of the wide variety of folks that government has to please that very little in the way of actually becoming energy self-sufficient will happen very quickly. The BEST way to drive wide scale energy self-sufficiency is to demonstrate how each of us as individuals can become energy self-sufficient WITHOUT relying on huge projects by the government.

I am reading a book right now called The Gridlock Economy by Michael Heller. What Heller shows is that when too many people own a small part of the whole, nothing ever gets done because consensus is required and can be blocked by one person. This concept was reiterated by the Former New York Gov. George Pataki. He was one of the few Republicans at the government energy conference February 24th headlined by Gore and Clinton. For a republican, this is odd, he said the federal government must get more involved in establishing power transmission lines. Pataki’s reasoning is similar to what is expressed in Heller’s book The Gridlock Economy - “If you try to run a wire through someone’s community that becomes about as contentious as you get,” said Pataki, and if that power is going through a state “you don’t have to take a poll, no one is going to be for it.”

This is the reason why I am pursuing energy self-sufficiency as an individual. I am not going to wait for the government to solve the gridlock problems with alternative energy. Not when the technology exists for me to become energy self-sufficient and there is appropriate legislation in place NOW that enables me to do just that.

Mother Jones May/June 2008 Magazine had an article called the “Seven Myths of Energy Independence.” Reading this convinced me more than ever of the need to pursue individual energy self-sufficiency. Based on their seven myths, here are the reasons to become energy self-sufficient.

Myth 1 - Energy Independence is Good. Summary of the Article: the point in this section is we need to focus on energy security rather than on energy independence. To build the new energy infrastructure we have to use the old energy infrastructure to do so and it will take a long time and be a lot more expensive.

Individual Energy Self-Sufficiency - if you purchase a house on an empty lot and you want to have landscaping of mature trees, you can either purchase the mature trees and take care of them so they transplant well, you can plant trees that get to maturity fast, or you can plant slow growing trees and plan to stay in that home long enough to enjoy them when they get to maturity. Becoming energy self-sufficient is the EXACT same thing. YES, it will cost a lot of you try to achieve energy independence all at once, but if you set it out as a long term goal and keep working at it, you will eventually create a lifestyle that is far more energy self-sufficient. AND you will also have energy security if you can create all the energy you need to run your life.

Myth 2 - Ethanol Will Set us Free - Summary of Article - States that there is no other fuel that offers the same combination of massive energy density and ease of handling as oil. It also points out the geopolitical issue of using biofuels created elsewhere.

Individual Energy Self-Sufficiency - This is flat out false, as many other fuels offer better energy and handling characteristics - especially biofuels. The major premise of this myth is that ethanol is the be all end all. This is a crazy myth and I don’t think anyone abides by this myth. There are tremendous sources of biofuels and more ways of turning trash into cash are emerging every day - especially for the individual to create their own bio fuels. Basically with all the nonsense going on with the governments worldwide, I am NOT waiting for some government solution to the energy problems we face.

Myth 3 - Conservation is a “Personal Virtue” - Summary of Article - Conservation makes tremendous sense and is relatively easier to do by making more efficient cars, appliances, homes, businesses. Also, upgrading to hybrid electric cars can decrease american’s demand for oil by 1/3. Because the majority of the grid’s electrical power is not used during the day, recharging the cars at night when existing power demand is much lower.

Individual Energy Self-Sufficiency - I never started the pursuit of energy self-sufficiency as a personal virtue. My goal is to become a self-sufficient maximalist. Extolling people to conserve energy is akin to your doctor chastising your weight. Sure you might change your habits for the short term, but people naturally gravitate back to habits where they are the most comfortable. When becoming energy self-sufficient, what happens is you become more conscious of your energy usage and you become more aware how much your day to day choices are really costing you with respect to energy usage.

Myth #4 - We Can Go it Alone - Summary of Article - What we decrease in our usage of oil, other countries will just pick up. We have to slow global demand overall if we want to increase worldwide energy security.

Individual Energy Self-Sufficiency - this myth fails to recognize the power of innovation or game changing technological changes. Look at how fast the internet changed communication practices and global trade. Forty years ago, the internet did not exist. By individuals pursuing a path of energy self-sufficiency, we open multiple paths of innovation. Just like what the internet has done for communication. Becoming energy self-sufficient is NOT about going it alone. It is about individual leverage and responsibility.

Myth #5 - Some Geek in Silicon Valley Will Fix the Problem - Summary of Article - Energy innovation relies on vast investment dollars from venture capitalists and the government.

Individual Energy Self-Sufficiency - well in the internet model of the world, we need more geeks in silicon valley putting their creative talents to becoming energy self-sufficient and sharing what they are learning with others (the purpose of this blog by the way).

Myth #6 - Cut Demand and The Rest Will Follow - Summary of Article - tax the living daylights out of us to make us conserve energy to develop energy security.

Individual Energy Self-Sufficiency - my gosh if Mother Jones Magazine is proposing taxing us to get us to comply with this or that government energy initiative - I thank my lucky stars I have an engineering background to pursue energy self-sufficiency. I want to be cannonized as the saint of common sense technology after I ascend to the afterlife. Their solution to this myth is the NUMBER one reason to become energy self-sufficient - to reduce the long term risks of outrageous government taxation on energy.

Myth #7 - Once Bush is Gone, Change Will Come - Summary of Article - all the next leader has to do is offer platitudes, but doesn’t really have to do anything to keep the pollster’s happy. Asking American’s to make sacrifices and to think globally is too hard to do.

Individual Energy Self-Sufficiency - who ever said anything about sacrificing? Why does the change to a different way of powering our life have to be associated with losing anything? What we are losing is dependency on moronic policies created by people who know absolutely nothing about generating power. We need more engineers in elected positions - the issue is most are too smart to waste their time in politics.

I have had major gut dissonance over the global warming issue as a driving factor in becoming energy self-sufficient. And it is NOT because of the scientific basis of if global warming exists or not or based on the pros and cons of global warming. Becoming energy self-sufficient is an economic and a national security decision. It is not a decision to save the planet as I have no idea of the long term ramifications of present day alternative energy solutions I am considering. The “environmentalist” arguments are not made based on economics or defensible scientific data but on a policy of fear and manipulation that will drive significant economic gain for the ones promoting their agenda. This diagram from http://www.boingboing.net/2009/02/04/climatic-heresy-3.html outlines the politics of fear on global warming.

Follow the Money on the Global Warming Politics

There is much confusion about the legislation for implementing alternative energy solutions.  For example, many people think that their home owners associations can limit their implementation of solar energy solutions.  In most states, there is specific legislation that limits the powers of home owners association related to implementing alternative energy solutions.   click here for a  table that summarizes the legislation by state.