A1 Energy - Blog , On-Site Energy Generation

What to Know About PA SRECs and Regional Price Trends

Mon, 27 Mar 2023 13:40:00 -0400

We frequently hear about low-cost financing options for solar panels, but that's not the only benefit to generating solar energy. SRECs—or solar renewable energy certificates—help states like Pennsylvania operate more sustainably while providing passive income to solar system owners.

Here's what to know about PA SRECs and the current regional price trends.

What SREC Stands For

SREC stands for Solar Renewable Energy Certificate.

SRECs are a form of solar incentive based on performance of the system. Solar project owners can earn passive income by generating more solar electricity.

Homeowners or industrial business owners can earn a certificate for every 1,000 kilowatt-hours (“kWhs”) or 1 megawatt-hour (“mWh”) of solar generation.

Many states—including Pennsylvania—have a renewable portfolio standard (RPS) that requires a specific amount of energy that utilities sell must be renewable. Unlike cap-and-trade programs, which put an upper limit on carbon emissions, RPS sets a minimum for sustainable energy alternatives. (RPS is sometimes referred to as APS, or alternative energy portfolio standard.)

SRECs for solar energy generation are a useful tool for helping utilities across the country meet the RPS standards of their State.

As RPS regulations change, SRECs are becoming more important.

How Pennsylvania's SREC Program Works

States implement a Renewable Portfolio Standard (RPS) when they want to stimulate solar development in their respective State. Legislators create a requirement for retail electricity suppliers to have an increasing percentage of “clean” kWhs in the energy they deliver to customers. This is regulated through the State Legislature.

Electric suppliers can meet the RPS mandate using one of two ways:

Building and operating their own solar PV systems (which few have done)
Buying the SRECs created by other solar PV installation in that state

If a supplier fails to meet the annual requirement for clean electricity, they pay a non-compliance penalty to the state. SRECs actively trade on a number of certified online platforms, including Flett Exchange and SRECTRADE.

Behind-the- meter solar PV systems offset the cost to the owner of buying the same amount of electricity from the grid resulting in savings. Large utility scale solar PV projects interconnect direct into the transmission system and sell the generated electricity to the grid at wholesale rates creating revenue for the owners. The SREC value is in addition to the value of the energy produced by the system.

For reference, here's how SRECS move through the SRECTrade platform:

Image Source: SRECTrade

In Pennsylvania, the overall RPS has a "solar carve-out" that says a certain portion of renewable electricity must come specifically from solar power.

PA SRECs have a lifespan of three years. Any SREC you generate in 2023 can count through 2025. Business owners and residents must own (not lease) their solar energy system in order to be eligible to sell SRECs in the Pennsylvania market.

How You Can Benefit from Pennsylvania SRECs

PA businesses benefit from SREC revenue. How much money you will earn from SRECs in any given year depends on two key factors:

How much energy your solar system generates
The price of each SREC (which depends on supply vs. demand and SREC prices by state)

At the start of 2023, SREC prices in PA hovered around $45 per certificate.

Pennsylvania SREC Market Update

RPS solar carve-out: 0.5% in calendar year 2021 (out of 18 percent overall RPS)

The Pennsylvania SREC market peaked above $300 in summer 2010, but quickly became oversupplied as systems built in other PJM interconnection states exported their SRECs to Pennsylvania as allowed under the state’s RPS plan.

The oversupply sent the PA SREC price crashing to a low of $4 by summer 2017. On October 31st, 2017 Governor Tom Wolf signed House Bill 118 that closed the state to the import of out-of-state sRECs. Existing out-of-state contracts would be honored through their termination date.

The legislation had an impact on market pricing, boosting the price for freshly minted PA SRECs close to $40 in 2021. Undersupply from a lack of SREC imports means in-state SREC prices are pressured upwards.

In early 2021, Wolf announced that half of PA's government electricity would come from solar energy by 2023. Meanwhile, a pair of state senators introduced legislation that would increase the PA RPS solar carve-out target to 5.5 percent by 2026. That legislation has since stalled but updated targets are still likely.

New Jersey SREC Market Update

New Jersey has seen consistently strong SREC prices for over a decade with spot prices around $223 at the beginning of 2023. The legislature and governor have modified the state’s RPS plan several times over the period, raising the amount of solar generation suppliers need to acquire. Assembly Bill 3723, signed by Governor Murphy in May 2021, was one such effort.

However, AB-3723’s solar requirement plateaus at approximately 5,300 gWh and reduces the Alternative Compliance Penalty steadily through 2033 as the state transitions to a new program.

The New Jersey Successor Solar Incentive (SuSI) program officially opened for projects on August 28, 2021.

Maryland SREC Market Update

RPS solar target: 6% by calendar year 2023, increasing to 14.5% by 2030

In 2019, Maryland Governor Larry Hogan passed the Maryland Clean Energy Jobs Act that pushes the overall RPS to 50% by 2030, 14.5% of which comes from solar.

By summer 2021, Hogan passed SB-65 into law to revise the state's RPS, decreasing the rate of solar carve-out increase over the next seven years while increasing the solar alternative compliance payment (SACP) during the same time period. The end goal for the RPS remains the same. Originally, the SACP was projected to decrease during this time period. This pivot will help decrease the degree of undersupply in upcoming years.

At the start of 2023, the latest bid price for MD SREC prices was near $59.

Bottom Line on PA SRECs

SRECs are an important tool to help utilities companies prioritize renewable energy like solar. They're also an effective method of generating passive income for solar power system owners. When combined with low-cost financing, investing in in-house solar for your PA business is a no-brainer.

TALK WITH OUR RENEWABLE ENERGY CONSULTANTS

Overview of CHP (Combined Heat & Power)

Mon, 15 Nov 2021 15:05:00 -0500

Finding cost-effective, sustainable energy is more than just a buzzword, and CHP may deliver the answer. Combined heat and power systems use a single fuel source to provide heat and electricity for a building, typically facilities with a consistent, ongoing thermal load.

CHP Systems:

Have 70%-80% efficient systems compared to 50% for standard systems
Meet sustainability goals
Provide reliable onsite energy generation
Reduce emissions and energy costs

What is CHP or Cogeneration?

Cogeneration systems reclaim excess heat from electric power generation. The most common fuel source is natural gas, although diesel, coal, and biomass may be used, too. Some systems can harvest geothermal or nuclear power. The systems are designed to capture the byproduct heat, usually steam, and use it within the host site's facility.

Additionally, newer CHP systems provide power back-ups in the event of an outage, ever more critical as the grid becomes more unreliable.

Cost-Effectiveness of CHP Systems

As businesses and governments seek energy efficient technology, and with the current price of oil burgeoning, finding energy sources that are both cheaper and more sustainable can help emerging markets grow. In fact, the Department of Energy conducted a study that identified several market conditions currently contributing to CHP growth:

Lower energy operating costs
Resiliency initiatives
CHP-friendly market regulations
Utility support
Federal and state policies and incentives
Project replaceability

Plus, as we mentioned above, cogeneration power systems reduce the strain on the electric power grid. One needs only to look at the state of the Texas power grid during an unexpected snowstorm in February of 2020 to see how easily a power grid can be overwhelmed. Opting for CHP systems instead of separate heating and electrical systems can ease that burden nationwide.

CHP systems have lower greenhouse gas and other harmful emissions and may be a viable option for developing new transmission and distribution infrastructure for clean energy.

DOE Analysis of CHP Systems

CHP technologies involve either a "topping cycle" or "bottoming cycle." Topping cycles, the most common use, burn fuel to create electricity. Part of the generated heat converts to thermal energy, which is then used for heating water, space heating, or industrial process steam.

The bottoming cycle is more common in large-scale industrial applications and uses fuel for industrial processes, such as in a furnace or kiln, and captures the waste from the heat for power production.

Eliminating the wasted heat and instead redirecting it into efficient usage drops operating costs for businesses and results in a more sustainable production cycle. Some other points to consider from the DOE report:

"Across all CHP categories, there is estimated to be more than 240 GW of technical potential at over 291,000 sites within the U.S."
"In contrast to the existing facilities with installed CHP, which are heavily concentrated at large industrial and manufacturing facilities, a significant portion of the remaining technical potential for on-site CHP in the U.S. is located in commercial facilities."

The Rise of Modern CHP

Using waste heat for power generation isn't a new trick. In 1882, Thomas Edison produced both electricity and excess steam to heat buildings close to his Pearl Street Station. At the turn of the 20th century, early electricity providers sold steam to local customers for industrial use or heating homes. Because steam can't be transported over long distances, this early CHP was limited to immediate local areas.

As the 20th century progressed, some manufacturing sectors used bottom-cycle CHP to turn exhaust into electricity, such as chemical plants, food processors, and paper mills. However, CHP remained largely underutilized until the Arab oil embargo in the 1970s. The electrical conservation plan of President Carter led to a shift in power generation, and non-utility generators (NUGs) rapidly emerged. The new CHP technologies changed how electricity could be sold and resulted in large-scale cogeneration.

Talk With Our CHP Team

Our CHP Team will conduct a review of your facility to see if CHP is right for you. Work with a trusted partner on your CHP project.

SCHEDULE A CALL

The Future of CHP

The Department of Energy has a long-standing goal of having a 20% generating capacity in the U.S. from CHP sources. Partnerships between the DOE and CHP "promote and assist in transforming the market for CHP, waste heat to power, and district energy technologies/concepts throughout the United States."

Microgrids, especially benefit from CHP, which can solve reliability and cost issues. Additional efficiency, environmental, and cost benefits from combining power creation with heating and cooling make CHP systems increasingly desirable.

Takeaway - New Opportunities for CHP

CHP systems are developing rapidly throughout the world, including emerging nations. Russia is the most aggressive developer, with the EU close behind. India, on the cusp of rapid development, is another ripe candidate for CHP, leveraging the sugar industry byproducts for energy. Stateside, developers and local municipalities can benefit from CHP systems and microgrids, preserving the integrity of the grid and reducing heating and cooling costs even as electrical demands increase.

The Benefits of CHP for Food Manufacturers

Fri, 21 Aug 2020 11:36:51 -0400

Industrial food manufacturers are known to use an incredible amount of energy when it comes to operating their facilities. Whether it is electric or thermal energy , food manufacturers depend on having enough precisely when they need it in order to operate smoothly. This need for a large amount of energy comes at both a great financial and emissions cost.

For that exact reason, major food manufacturers across the country are always looking for new and meaningful ways to either decrease their energy needs – or rather, make their energy usage more efficient – so that they can optimize the energy dollars spent and improve the bottom line.

That is why many food manufacturers evaluate and implement combined heat and power (CHP), also known as cogeneration. Adding a CHP system to a food processor facility is one of the best ways to take advantage of top technologies in order to see a business prosper.

How it Works

CHP is an energy efficient process that generates electricity and captures the heat that would otherwise be wasted to provide useful thermal energy- such as steam or hot water- that can be used for space heating, cooling, domestic hot water and industrial processes.

There are two common configurations of CHP –

• Combustion turbine, or reciprocating engine, with heat recovery unit

• Steam boiler with steam turbine.

A reciprocating engine with a heat recovery unit burns a fuel (natural gas, diesel, or biogas) to produce electricity and use heat recovery devices to capture the the exhaust and jacket heat from the engine. This heat is converted into useful thermal energy, usually in the form of steam and/or hot water.

A combustion turbine is typically a simple cycle gas turbine to produce electricity and a heat recovery boiler to recover exhaust heat and turn to steam.

Steam turbines use a separate heat source and do not directly convert fuel to electricity. The steam is transferred from the boiler to the turbine through high pressure steam that in turn powers the turbine and generator to produce the electricity. These systems can use a variety of fuels, such as natural gas, oil, biomass, and coal and often are used in large utility plants.

Absorption chillers are often designed into a CHP project. The chillers can be exhaust fired using thermal energy recovered from the (CHP) prime movers. (e.g., reciprocating engines, microturbines, and combustion turbines)

Overview of Benefits

There are many benefits of combined heat and power for food manufacturers, here is a quick overview of what you can expect:

● Your system’s enhanced operational efficiency will dramatically decrease overhead costs

● You will reduce waste and further increase energy efficiency

● You will gain newfound and improved energy independence by moving a portion of your energy needs off the grid and decrease your carbon emissions

● You will potentially have the opportunity to improve other infrastructure

● You will gain increase energy resiliency and help ease congestion of the grid

● You will minimize energy cost risks based on fluctuations in the future markets

● You will enjoy greater economic stability and independence

As you can clearly see, all of these benefits will not only have the potential to have a positive impact on your business, but also your peace of mind going forward.

Overall, the main reason why food manufacturers turn to combined heat and power is because it can help decrease both your carbon emissions and energy costs. Believe it or not, when it comes to total emissions, a food processor that is using CHP will be generating both electric and thermal energy at a combined efficiency of up to 85%. Competitors without CHP, getting electricity from the grid and generating heat the traditional way typically run at a combined efficiency of around 55-60%.

You will enjoy an increased level of energy stability thanks to your business no longer fully relying on the grid.

In the end, it is quite clear why combined heat and power should be a consideration for all food manufacturers .

Microgrids: Where Sustainability and Resiliency Meet

Tue, 28 Jul 2020 09:48:27 -0400

Microgrids of the modern era are tough, tactical, and efficient - and they highlight the importance of localized distribution.

The US is home to thousands of microgrids in both operational and planning phases. Some are basic while others are more advanced, but they all have one thing in common. They deliver a sense of security to commercial, industrial and residential communities by offering power when the big grids fail.

Microgrids — small-scale distributed energy grids — are more consistent and resilient than large, centralized grids. Unlike wind power, they work even when the wind doesn't blow. And they're sustainable, something that can help companies solidify efficiency metrics in a restrictive market.

What are Microgrids?

In short, microgrids are freestanding grids that are independent of larger, regional grids. While many can be integrated within these larger frameworks, they don't rely on them. When the going gets tough, a microgrid's control system flips a switch that tells it to decentralize itself. This allows the microgrid to reap the benefits of its own power, without succumbing to widespread failure.

How Microgrids Augment the Industrial Setting

Resiliency

Similar to decentralized currency, microgrids are an independent energy solution. They don't have to rely on larger energy platforms to function, though they're able to integrate with regional power grids to provide a more robust grid system in a particular area.

Microgrids exist on a small scale, though systems of microgrids — as well as microgrids connected to regional power grids — have impressive capacity. When it's time to go independent, they "island" off, giving microgrid-run communities or facilities the upperhand in the wake of brownouts. For industrial and commercial locations who can't afford to ride out outages, this is an empowering reality.

Sustainability

In practice, most of the world's microgrids rely on diesel generators. But with more stringent environmental regulations in place, the times are a-changin'. The US primarily uses natural gas and combined-heat-and-power (CHP). Moreover, experts expect solar photovoltaics (PV) to account for 1 9.5% of the global volume of microgrids by the end of 2025.

Microgrids are especially relevant in regions hit hard by climate change. Heightened rates of natural disasters make energy resiliency even more important — and to resolve outages in an efficient way only makes sense.

Because of microgrids' ability to integrate with various power sources, it proves to be a flexible baseline for localized, efficient energy to come.

CHP Generators Rescue Energy to Enhance Microgrid Setups

CHP generators work in tandem with microgrids to make decentralized energy generation even more efficient and useful.

Because of the three laws of thermodynamics, waste heat is inevitable. CHP systems capture waste heat and transform it into thermal energy. When CHP generators work their magic on microgrids, they generate additional energy while simultaneously cooling the system.

Wind is a magnificent act of nature, but there's one caveat: it's volatile. No wind, no power. Beside that, wind power maxes out at 40% of its potential energy output. When working in conjunction with CHP generators, microgrids can boost wind's potential energy output to upwards of 90%. US microgrids are more likely to utilize solar PV and natural gas. Still, it goes to show just how effective CHP is in capturing lost energy and lost money, regardless of the resource at hand.

In such a valuable partnership, CHP generators and microgrids work to boost efficiency and reduce net operating costs in any industrial setting.

The Critical Compatibility of Microgrids and Solar PV

An increasing number of microgrids are relying on solar PV, primarily as an additional generating source when other power is down.

On their own, solar panels cannot keep the lights on when the grid fails during an outage. Even when an industrial building has solar panels, that building still requires voltage from the grid to power the facility. But when a microgrid itself is fitted with solar capability, it can island itself to generate power during a storm or other unexpected event.

A microgrid can include multiple energy sources, but solar PV is an increasingly relevant part of the picture. As a result, many solar PV projects are now being built with future microgrid compatibility in mind, even before any grid planning takes place.

Adaptability Through Battery Storage

Thermal, fuel cell and other forms of battery storage make microgrids even more efficient and diverse. When retrofitted with battery storage, they become a wildly resilient source of localized energy deployment. CHP- or solar-generated power can be stored for later use to fill in gaps during outages or fluctuations.

On their own, microgrids are a form of energy security. But depending on a company's resiliency goals, that additional padding in the form of battery storage could be a necessary investment. Most microgrids are only partially resilient. Energy storage firms things up, meaning facilities can seamlessly reconnect to utility as soon as it's safe to do so.

Why Microgrids Now?

In the midst of a swiftly changing world, energy resiliency can literally be a matter of life or death. Industrial facilities like hospitals, and commercial buildings like senior living centers, require energy to make use of available treatments and technologies.

At the same time, increased efficiency can build critical wiggle room into the bottom line. When you don't know what kind of investments you'll need to make next, efficiency makes all the difference. A thoughtful microgrid system delivers resiliency and sustainability to communities across the country; if that's not important in 2020, we don't know what is.

A1 Energy is a solutions-driven team of experts providing results in the form of solar PV, CHP and more. From feasibility studies to operation and maintenance, we support industrial clients seeking a more resilient, more efficient operation.

Resources:

https://www.grandviewresearch.com/industry-analysis/microgrid-market

https://courses.lumenlearning.com/introchem/chapter/the-three-laws-of-thermodynamics/

https://www.distributedenergy.com/microgrids/article/13034342/chp-and-microgridsa-profitable-pair#:~:text=Two%20such%20energy%20delivery%20technologies,to%20a%20group%20of%20users

https://www.nrel.gov/docs/fy18osti/70122.pdf

https://microgridknowledge.com/energy-storage-microgrid/

A1 and Cleveland Bros. Install 4MW CHP at CarbonLITE

Tue, 09 Jun 2020 15:53:10 -0400

In 2017, China announced a new policy to restrict the import of various solid waste and raw materials, including plastics such as PET, PE, PVC, and PS. Since the implementation of material restriction, much of the U.S. has been at a standstill with PET (polyethylene terephthalate) plastic processing. The need for domestic PET processing plants has skyrocketed since cities and state governments have created laws to fix the plastic waste issue.

Much of the PET that once went to China is now stagnant in our waste stream or shipped to the few Southeast Asian countries still accepting plastic for incineration. With the production of PET plastic now at 3.1 million tons in the U.S., companies like CarbonLITE are expanding PET plastic processing facilities to help handle some of these recyclables domestically.

CarbonLITE, a Riverside, California facility founded by Leon Farahnik, is now expanding to Berks County, PA. The organization is one of the few plastic processing plants in the U.S. to make food-grade PET plastic so that it can be reincorporated into the system again. The final location was based on proximity to major customers.

CarbonLITE converts used plastic bottles made of PET into a resin. The resin is then used to create new PET bottles. It's CarbonLITE's 6-step recovery process that makes it possible for food grade PET to be turned into new bottles. Most PET plastic is typically downcycled into fabric fibers, carpets, and polyester.

The new facility will be investing in combined heat and power (“CHP”) to power the energy-intensive plastic processing at the plant.

A1 Energy and Cleveland Brothers have partnered to manage and execute the addition of 4MW of cogeneration power to the new facility. The new facility will use a combination of local utility power and power generated from the new CHP system. Blue Rock Construction, Inc. (based in Allentown, PA), in partnership with Brasler Properties and Endurance Real Estate Group, is the general contractor responsible for the new facility's build-out. Kupper Engineering, of Ambler, PA is providing electrical, mechanical, and plumbing engineering services. In addition, Kupper Engineering is providing interconnection application services to Met-Ed for the use of three 1,475kW natural gas gensets in CHP mode rated to operate in parallel with Met-Ed's system, as well as engineering services for a new 15kV service and distribution line.

What is CHP?

Combined Heat & Power (CHP) systems are an efficient solution for meeting facility energy needs. CHP systems achieve over 80% fuel efficiency compared to traditional methods of buying grid supplied electricity and generating steam or hot water in boilers. The higher fuel efficiency leads to both energy savings and reduced environmental footprint for the CHP adoptee. And for energy users concerned about reliability, CHP can be configured for black start/island mode operation for increased reliability during utility outages. With both turnkey and third-party Power Purchase Agreement (“PPA”) solutions now available, and the increased awareness of its many benefits, industrial adoption of CHP is on the rise.

About A1 Energy

A1 Energy is a leader in energy consulting services committed to developing and delivering creative solutions to optimize energy efficiency, reliability, and sustainability for our clients. We combine our in-depth industry knowledge and financial expertise to dramatically lower energy costs and meet sustainability measures for our clients. We support government agencies, industrial, and commercial clients in achieving energy efficiency through reduced demand, strategic procurement, and renewable energy sources. Stay informed on new energy projects on Linkedin and Twitter.

About Cleveland Brothers Equipment Co., Inc.

Founded in 1948, Cleveland Brothers Equipment Co., Inc. is the exclusive Cat® dealer of western and central Pennsylvania, northern West Virginia and western Maryland, providing new, used and rental equipment and machinery, parts and service. Cleveland Brothers supplies a vast variety of solutions and products, including industrial diesel and gas engines and generators, air compressors and boosters, oil and gas machinery, construction equipment and much more, in addition to full truck service for all makes and models. With 26 locations, customers have access to all of the parts and equipment needed to get the job done, backed by industry-leading technicians and staff. For more information, please visit www.ClevelandBrothers.com.

Resources:

https://www.a1energy.net/energy-generation

https://www.clevelandbrothers.com

https://advances.sciencemag.org/content/4/6/eaa t0131

https://www.mcall.com/business/mc-biz-carbonlite-bottle-recycling-plant-berks-county-20190514 -6xsw47xo6rbkhlbfro77hkcu7u-story.html

https://everydayrecycler.com/rpet-plastic/

https://www.ptonline.com/articles/carbonlite-to-open-new-pet-recycling-plant-in-pennsylvania

Implementing Solar PV for Local Governments

Fri, 10 Apr 2020 20:34:02 -0400

Renewable energy is being adopted by municipalities across America and is a way for smart cities and communities to maintain resilience and independence for the future. There’s an inevitable move away from dependence on carbon-heavy single sources of energy, and toward energy independence and diversity of renewable energy sources. Renewables, like solar, are especially getting easier to adopt as they are now offered with financial models that are as simple as a financial transaction, providing a swift transition to Solar Energy. The enormous potential for a reduced carbon footprint is a big win for communities in the Mid-Atlantic Region.

Some municipalities are showing their dedication to reducing carbon emissions by investing in fleet transitions to electric vehicles. While this move is a step in the right direction, without powering those fleets from a renewable source, it only moves the source of emissions from the tailpipe of fleet vehicles to the coal or gas-fired power plant that power charging stations. The calculations for carbon emissions would remain in play until the source of the energy was changed.

In this article, we highlight some of the most significant benefits from municipalities that have already adopted solar projects for their communities, as well as the key financial models that have proven successful.

Top Reasons Why Municipalities Need Solar Energy:

Municipalities can achieve Energy Management goals.
Reduce carbon footprint.
Improve local air quality & health.
Economic stimulus and job creation.
Mitigate fuel price volatility.
Energy security.
Significant long term post savings.
Serve as a model to residents, businesses, and neighboring towns.
Increase efficiency in municipal operating resources.

Top Reasons Why Municipalities Need Solar Energy:

Establishing a need to move toward renewables (primarily solar here) within the community gives a powerful base of support. Being open about the overall energy management goals and sharing realistic baselines smooths the development process within the city’s management, engineers, and the population in general. Solar energy offers a route to accomplish goals such as:

Reduction in GHG (greenhouse gas) emissions by a certain percent over X years
Reduction in energy costs
Increasing sustainable energy sources

Reduce carbon footprint

Climate change is feeding stronger weather patterns and producing increased hurricanes across the eastern seaboard. To reduce the emissions contributing to climate change, solar energy offers Mid-Atlantic communicates a way to turn the lights on without turning the heat up, globally.

Improve local air quality and health

The World Health Organization has officially ranked ambient air pollution the world’s number cause of death and accounts for 4.2 million lives lost every year. Community leaders can look at reduced fossil fuel burning and benefits like cleaner skies and waterways. The toxins from fossil fuel burning hit the cities’ hospitals with various respiratory issues, heart attacks, heart diseases, and not to mention the devastation of cancer. You might even be surprised to learn that air pollution has a significant impact on acquiring type 2 diabetes. You could also follow the trail of absenteeism right back to health ailments associated with air pollution, all the more reason for municipalities to improve quality of life and health by converting to solar.

Economic stimulus and job creation

According to the U.S. Department of Energy solar power employed 43% of the electric power sector’s workforce while all fossil fuels combined accounted for just 22%. Jobs are another advantage that solar projects bring to the municipalities of the Mid-Atlantic Region. Solar employs more people in electrical generation than oil, coal, and gas combined. The latest numbers recorded from 2015-2016 show 374,00 were employed in Solar energy while traditional fossil fuels employed 187,117 people. In particular, this means more jobs per megawatt (MW) of power installed, per unit of energy produced, and per dollar invested.

Adding Solar infrastructure to municipalities means added jobs. Added jobs mean monies available for restaurants, rents, and buyers of all kinds. It is a boost to community, city, state, and even federal coffers.

Mitigate fuel price volatility

Fuel and gas prices are in constant fluctuation. That means tax revenues and the ability to manage fuel costs are tied to that high volatility. The many positives of fossil fuels ignore the many negatives, and those negatives are external costs that wage a substantial impact on communities, the state, the federal level, and the world. Solar energy stabilizes energy expenses. Solar is a technology that, once put in place, will pay back to all owners involved.

Energy security

Energy security is a growing requirement for local governments. Storms from North Carolina to Puerto Rico demonstrated that while solar farms experienced minor damages, these renewable energy facilities came back online faster than those powered by fossil fuels.

Imagine 328 days without electricity. Hurricane Maria was finally fixed for 1.5 million of its residents. That’s 11 months. While it is true that these might be extreme circumstances, repairing damaged refineries and supply lines take longer than installing or repairing solar panels.

Significant long term savings
Comparing price per kWh, solar energy costs $0.029/kWh, and fossil fuels cost $0.05/kWh. Solar energy offers significant long term savings, and it not only produces more energy on investment dollars, but it also is now officially cheaper than the energy produced by the fossil fuel industry.

Comparing prices can be tricky, but the above is based on a major commercial solar installation bid via Energy Sage. Remember Solar PV is a technology and its costs will continue to fall every year it is in use. Plus as research continues to develop and the technology improves its benefits and costs will decrease.

Serve as a model to residents, businesses, and neighboring towns

Success breeds success. When communities come together to embark on solar energy projects, and they educate members of their residential and business communities, it increases visibility and renewable energy buy-in. This is where the implementation of C-PACE programs can easily follow by example and building owners can take advantage of lessons learned, applying them to their own solar projects.

Increase efficiency in municipal operating resources

Solar projects, especially those executed through a third-party PPA can take advantage of operations and maintenance handled externally. Streamlining a solar project places many gains on the side of operations efficiency and helps reduce demand on municipal resources.

3rd party financing options for municipal solar projects

While there are many routes to financing a municipal solar project, none are more easily adopted than 3rd party financing. Here are the most common third-party financing models for municipalities, followed by a heavy focus on power purchase agreements (PPAs).

Operating leases
Sales/leaseback structures
Partnership/flip agreement
Hybrid financing structure
PPAs

Power Purchase Agreement

One of the most attractive options for municipal solar projects are Power Purchase Agreements (PPAs). The main components of a PPA include:

Builder-owned, operates and maintains a Solar PV system so little to no upfront costs.
Receive Federal Tax Incentives indirectly through lower electricity prices.
Agreements that give a predictable cost of electricity over some 15–25 years.
Allows for outsourcing of the designing and permitting which can become complicated.
Freedom from operating and maintenance responsibilities.

Municipalities are not known for being flush with funds that allow for upfront capital investment projects like solar upgrades. PPA’s main attraction is that they help cash-strapped communities hurdle the renewable energy fence. The third party ownership (a developer, investor group and others) keeps the costs off of a municipality’s balance sheet. All the details of putting the project together, developing it and then operating it will remain with the third party.

Predictable, stable and often low-cost electricity can start as soon as the system is commissioned. Right away your municipality reduces its carbon footprint and will, no doubt, start adding power back to the grid.

No upfront capital required, and another beneficial element is that the developer is responsible for performance, operations, maintenance, and the risks associated with the O&M of the system.

Municipal Solar Financial Incentives

USDA – High Energy Cost Grant Program

This program is geared to helping rural communities exceeding 275% of the national average to allow for implementation of new energy generation, transmission or distribution equipment. It will also cover the maintenance of existing equipment, including on-grid and off-grid renewable projects.

USDA –Rural Energy for America Program (REAP) Grants

Both grants and guaranteed loans are covered under this program. Commercial and agricultural entities in rural areas can receive up to 25% of eligible project costs, with 75% for loans. These can range from $2500 to $500,000. DSIRE indicates REAP grants may also apply to Schools, Local, and State Governments. These grants may also apply to Tribal Governments, Rural Electric Cooperatives, Agriculture, Institutional and Public Power Entities.

REC Incentives

Renewable Energy Certificates (RECs) come under a variety of names but essentially are tradable commodities that prove 1 megawatt of energy was produced by an eligible energy resource. Solar goes under the acronym SREC and, of course, has a similar function as RECs with energy going in and out of the grid. These are meant to support renewable energy generation through supply and demand type economic incentives.

Renewable Energy Feed-In Tariffs (FIT)

This incentive is in the pilot stage in a few locations across the U.S. Feed-In Tariffs have been successful in Europe and other parts of the world. The concept has allowed for rapid solar development. The idea is that a host site develops a solar P.V. system and sells power at an attractive rate directly into the utility grid. The host may get payments from RECs, the energy they produced and establishes a stream of payments encouraging investment for the project; offsetting financing costs over an agreed contract period. Sustaining feed-in tariffs on a large scale has been difficult for utilities and state governments. Not as wide-spread here in the U.S. as they are in Europe, as this is a pilot.

Rebates

Rebates are available with many states and utilities. Rebates can help with the purchase of solar P.V. equipment. Of course, availability will vary, as well as varying rules, eligibility, and guidelines. Observe rebates local to you, as they may be different even within specific utility jurisdictions.

Other helpful programs and community based solar models to know about

Solar Co-ops are all about getting neighbors together for access to discounts through bulk buying. To learn more, check out Solar United Neighbors’ solar co-op model.

C-Pace or Commercial Property Assessed Clean Energy Program. Share this program with your local businesses. They gain. The community gains. The Municipality and the County gain.

The US Department of Energy has a helpful guide for local governments to establish Solar PV as part of their SunShot Initiative.

Next steps for municipalities planning solar pv projects

Municipalities ready to make the solar switch will want a tailored assessment to move the project through proper planning. Experienced specialists can build a structure that will make for a balance of energy production for your community, and include multiple renewable sources in addition to solar energy production.

The municipality will need vetted, trusted vendors supporting the solar project, reliable equipment manufacturers, and an EPC contractor. Then you will want an installer and an O&M provider. Getting the right project partners will reduce risks in your contracts. Carefully interview and rate vendors. Be sure to keep an experienced solar PV consultant or such close by to help in the selection process. You want to look for the years in business, their financial strength, as well as their internal processes like safety plans and ISO certifications (9001/14001). Essentially watch for risk and a commitment to quality. Finances might be a helpful gauge of whether your consultant will be able to deliver and support their services or products over an extended period of time. Are applications for and obtaining required permits keeping construction on track? How about the equipment supply? Watch these milestones plus the interconnection application and approvals from the utility.

Set your municipality or community solar project on the right course. Follow some examples from across the country by taking a look at projects completely and currently in progress now via the EPA Local Government Solar Project Portal.

Resources:

http://www.smartcitiesinsider.com/100-percent-renewable-energy-goal/

https://www.solarunitedneighbors.org/go-solar/

https://www.a1energy.net/blogs/post/C-PACE-Financing-Now-Available-in-Lebanon-County

https://www.wppsef.org/about

https://www.eesi.org/papers/view/fact-sheet-jobs-in-renewable-energy-energy-efficiency-and-resilience-2019#3

https://www.eesi.org/topics/jobs

https://ieefa.org/ieefa-update-new-oil-price-volatility-will-help-drive-transition-from-fossil-fuels/

https://www.energy.gov/eere/solar/community-and-shared-solar

https://www.who.int/health-topics/air-pollution#tab=tab_1

https://www.ncbi.nlm.nih.gov/pubmed/25635985

https://www.reuters.com/article/climate-change-dominica-solar/removable-solar-panels-boost-storm-readiness-in-dominica-idUSL8N28N40E

https://www.energy.gov/sites/prod/files/2017/01/f34/2017%20US%20Energy%20and%20Jobs%20Report_0.pdf

PA Legislative CHP Update

Tue, 11 Sep 2018 14:06:41 -0400

Guest post by Robert Barkanic P.E., The Barkanic Group

Combined heat and power (CHP) is an efficient and clean approach to generating electric power and useful thermal energy from a single fuel source. Rather than buying electricity from a distribution company or a retail supplier, and separately combusting oil, gas or coal in an on-site boiler to produce steam or hot water, an industrial or commercial facility can use CHP to provide both services in one, energy-efficient step. The benefits of CHP are clear; improving competitiveness, reducing energy operating costs by becoming more energy efficient, and reducing environmental pollution such as greenhouse gasses, oxides of nitrogen and sulfur dioxide emissions.

Pennsylvania is already embracing CHP with over 7500 MW’s of capacity at over 12,000 sites, and the potential for more is significant. Sites range from nursing homes and hospitals to colleges and universities, to food processors and other agricultural applications to chemical, metals processing and pulp and paper to correctional facilities.

According to a 2016 DOE Study there exists close to 11,000 MW of CHP potential in Pennsylvania alone. Across the country that number is over 240,000 MW.

The state legislature, recognizing the benefits of CHP, both economic and environmental, passed the Alternative Energy Investment Act. This Act was signed into law in July 2008 and provides for grants and loans for the utilization, development and construction of alternative and clean energy projects in the state, including CHP.

The Pennsylvania Public Utility Commission is encouraging Electric Distribution and Natural Gas Distribution companies to support the development of CHP projects by reducing the barriers to entry within their service territories and by, for example, helping identify the federal and state incentives and funding programs available. The PUC is also requiring the utilities to report biennially on their proposed plans to encourage CHP development including the identification of any barriers and their recommendations to reduce or eliminate them, identification of CHP systems that are or have been interconnected to the system, an estimate of the annual energy and financial savings that customers may experience over the life of the CHP system, benefits to the distribution system, the costs associated with interconnection and efforts to facilitate the ability for larger CHP systems and those not captured under the net metering regulations to meet applicable interconnection standards, to name a few. These reports will highlight the good work that is going on in Pennsylvania and the opportunities to improve the administrative systems to enhance CHP implementation.

So regardless of whether your interest is lowering your operating costs or environmental emissions or increasing the resiliency of your facility you should consider investigating a CHP project at your site.

Industrial manufacturing facilities in the Chemical industry, metals processing and petroleum industry as well as the food processing industry, governmental and commercial buildings have all benefitted from CHP. Isn’t it time you consider doing the same? To talk about CHP opportunities at your facility please contact A1 Energy.

Combined Heat and Power Technical Potential in the United States, US Department of Energy, March 2016

Can Your Facility Benefit From CHP?

Tue, 19 Jun 2018 14:18:10 -0400

Energy costs can be a major source of budget stress for commercial and industrial facilities, especially when electricity rates fluctuate with no notice. Combined heat and power (CHP), or cogeneration, is an approach that helps facilities produce reliable on-site energy at a lower price than an electric utility supplier.

CHP simultaneously produces electricity and reclaims waste heat, redirecting the captured thermal energy to steam or hot water. There are multiple system configurations, including gas turbines, reciprocating engines, steam turbines, absorption chillers, and fuel cells. This type of distributed energy generation has several key benefits over energy purchased from a utility:

“Nearly two-thirds of the energy used by conventional electricity generation is wasted in the form of heat discharged to the atmosphere. Additional energy is wasted during the distribution of electricity to end users. By capturing and using heat that would otherwise be wasted, and by avoiding distribution losses, CHP can achieve efficiencies of over 80 percent, compared to 50 percent for typical technologies (i.e., conventional electricity generation and an on-site boiler),” notes the EPA.1

Until recently, CHP was only used for new construction, district energy systems like college campuses. But today cogeneration packages can be used for projects between 500kW and 3MW. This allows industrial facilities, offices, hospitals, K-12 schools, hotels, and mixed-use facilities to take advantage of CHP.

Combined heat and power can also be an economically viable option if you are facing one or more of these issues:

High energy demand – Facilities that use energy-intensive processes, have a large footprint, or 24/7 operations experience high energy consumption regardless of how many energy-efficient measures they implement.

Variable utility costs – The cost per kWh for commercial users averages 10.47 cents but can range between 8-17 cents across the U.S.2 These rates can shift depending on time of day, season, weather conditions, and the market price of fuel sources.

Energy resiliency – Most businesses can’t risk unexpected downtime from a blackout or brownout. Because the electric grid is aging beyond its intended life expectancy and most transmission lines are at capacity, the American Society of Civil Engineers gave the U.S. energy infrastructure a D+ grade on its 2017 report card3. Because CHP generates energy at the point of use, it minimizes issues with transmission and distribution.

Environmental responsibility – CHP offers a number of sustainable benefits, including reducing greenhouse gas emissions by 40% and consuming almost no water6. The system can also use biomass like wood waste or agricultural residue, landfill or digester gas, or hydrogen in the case of fuel cells.

Aging equipment – The EPA recommends CHP for properties that need to replace or upgrade central plant equipment or expect a facility expansion within 3-5 years.4 Either scenario is a good opportunity to make capital investments in this type of energy system.

A1 Energy has been involved in developing CHP projects over the last 5 years and continue to develop more.

1. https://www.epa.gov/chp/what-chp

2. https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a

3. https://www.epa.gov/chp/my-facility-good-candidate-chp

4. https://www.energy.gov/sites/prod/files/2017/12/f46/CHP%20Overview-120817_compliant_0.pdf

Why extending the Solar ITC was a smart move

Fri, 25 Mar 2016 09:51:07 -0400

Solar energy, a clean, sustainable, and renewable energy source is growing in popularity worldwide, and offers itself as an important alternative to environmentally harmful fossil fuels. The US market has just been given a seal of approval –government backed. The ITC (Investment Tax Credit) was scheduled to drop to 10% at the end of 2016 for larger commercial and industrial projects BUT the government stepped in. It will remain at 30% through 2019, drop to 26% for 2020, 22% for 2021 and 10% for 2022 and beyond.

Several experts noted that one of the benefits of the ITC extension is that it will provide a bridge for renewable energy expansion between now and the first set of state compliance deadlines for U.S. EPA's Clean Power Plan in 2022. The CPP will require a 32 percent cut in utility-sector carbon emissions from 2005 levels by 2030, with some states seeing reduction requirements as high as 45 to 47 percent.

In addition to the ITC extension – solar panel costs have declined nearly 50% since 2009.

Market projections from SEIA and partner GTM Research indicate the U.S. solar market will add roughly 72 gigawatts of new capacity between 2016 and 2020, pushing the country's net solar capacity to more than 100 GW, or roughly 3.5 percent of all electricity produced in the United States.

Solar sector investment is expected to rise by $40 billion between 2016 and 2020, according to SEIA, and after 2020 should draw an average of $30 billion a year. Solar employment is also poised to nearly double over the same period, to roughly 420,000 jobs.

If you looked at solar with-in the last 5-7 years and decided it was not a good financial decision it is now definitely worth taking a second look!

A1 Energy - Blog , On-Site Energy Generation

What to Know About PA SRECs and Regional Price Trends

What SREC Stands For

How Pennsylvania's SREC Program Works

How You Can Benefit from Pennsylvania SRECs

Pennsylvania SREC Market Update

New Jersey SREC Market Update

Maryland SREC Market Update

Bottom Line on PA SRECs

Overview of CHP (Combined Heat & Power)

What is CHP or Cogeneration?

Cost-Effectiveness of CHP Systems

DOE Analysis of CHP Systems

The Rise of Modern CHP

Talk With Our CHP Team

The Future of CHP

Takeaway - New Opportunities for CHP

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The Benefits of CHP for Food Manufacturers

How it Works

Overview of Benefits

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Microgrids: Where Sustainability and Resiliency Meet

Microgrids of the modern era are tough, tactical, and efficient - and they highlight the importance of localized distribution.

What are Microgrids?

How Microgrids Augment the Industrial Setting

CHP Generators Rescue Energy to Enhance Microgrid Setups

The Critical Compatibility of Microgrids and Solar PV

Adaptability Through Battery Storage

Why Microgrids Now?

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A1 and Cleveland Bros. Install 4MW CHP at CarbonLITE

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Implementing Solar PV for Local Governments

Top Reasons Why Municipalities Need Solar Energy:

Top Reasons Why Municipalities Need Solar Energy:

Improve local air quality and health

Economic stimulus and job creation

Mitigate fuel price volatility

Energy security

Power Purchase Agreement

Municipal Solar Financial Incentives

Other helpful programs and community based solar models to know about

Next steps for municipalities planning solar pv projects

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PA Legislative CHP Update

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Can Your Facility Benefit From CHP?

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Why extending the Solar ITC was a smart move