Tag Archives: Investment Tax Credit (ITC)

What the Biggest Corporate Energy Buyers Want from Federal Clean Energy Policy

By Jeff St. John, Greentech Media

On Monday, a notable subset of the largest U.S. corporations signed on to a statement from the Renewable Energy Buyers Association (REBA), laying out their top federal policy priorities to help them meet their own aggressive decarbonization goals. Among the 34 signatories are tech giants like Amazon, AppleFacebookGoogle and Microsoft, manufacturing heavyweights including Cargill, Clorox and General Motors, and global retail and consumer brands like Disney, Johnson & Johnson, McDonalds, Target and Walmart. Many of these companies have already pledged to zero out their carbon footprints in the next decade or two, whether internally or across their supply chains. Read more here.

ESG & SUSTAINABLE FINANCE

Welcome to a new era of ESG and sustainable finance, by Joel Makower, Chairman and Executive Editor, Green Biz Group

A vast ecosystem is in play. Investors have awakened to the notion that how companies manage environmental and social issues is nearly as key to their risk profile and profitability as are financial fundamentals. Banks and insurers are factoring climate risk and social issues into their products and portfolios, accelerating a shift that’s been gearing up for years.

Companies are warming to a world of deeper transparency and disclosure demands by investors, lenders, customers and others, and are trying to keep up with the dynamic world of standards and frameworks with which they’re being asked to comply. Oh, and it’s the dawn of a new U.S. presidential administration that sees virtue in assertive action on a range of social and environmental issues.

ADDITIONAL RECOMMENDED READING

KELLY SPEAKES-BACKMAN

Biden-Harris Administration picks Energy Storage Association CEO to join senior DoE leadership, Energy Storage News

A former utility commissioner in her home state of Maryland, Kelly Speakes-Backman has been leader of the ESA during a period of fast growth and rapid scale-up for energy storage in the US, with more than 2GW installed during that time.

In a recent interview for Energy-Storage.news, the now former ESA CEO said that the association expected to see at least 3.6GW of storage installed during 2021, and ESA published ‘Vision 2030’ a while ago, citing that the deployment of at least 100GW of energy storage on the grid is both desirable and achievable.

EV CHARGING 

EVgo Seeks $2.6B Public Market Valuation in SPAC Reverse Merger, Greentech Media
The LS Power subsidiary is the second major EV charger company in the U.S. seeking public capital to meet rocketing demand.

HOME HYDROGEN BATTERY

World-first home hydrogen battery stores 3x the energy of a Powerwall 2, New Atlas

To get off the grid with home solar, you need to be able to generate energy when the Sun’s out, and store it for when it’s not. Normally, people do this with lithium battery systems – Tesla’s Powerwall 2 is an example. But Australian company Lavo has built a rather spunky (if chunky) cabinet that can sit on the side of your house and store your excess energy as hydrogen.

SOLAR SCHOOLS

Solar Landscape to Provide Cost-Free Electricity to Asbury Park Schools, Renewable Energy Magazine
Entering into a 15-year Power Purchase Agreement (PPA), Solar Landscape will provide electricity to the Asbury Park School District at no cost for the entire term of the agreement. This will result in a critical cost savings of more than $120,000 a year for Asbury Park schools.

What is a solar power purchase agreement?, Solar Energy Industries Association 

 

FEATURED WIND ENERGY RESOURCES

Wind Workforce Webinar Series Offers Insights, Information, and Solutions
To help industry recruit the best and brightest people and to provide students with the essential resources to set them on a path toward a rewarding career in the wind energy workforce, NREL, in partnership with the Investment Tax Credit (ITC), hosted a three-part Wind Workforce Webinar Series as part of American Wind Week 2020.

KidWind Launches the Power Grid Kit
The KidWind Project recently launched the Power Grid Kit—the first large-scale, functioning grid model that provides educators with a one-of-a-kind opportunity to explore power grid systems and solutions with students of all ages. The kit models the flow of electricity from generation sources like nuclear, coal, natural gas, wind, hydropower, and solar power through substations before being distributed to industrial, commercial, and residential consumers. It also models distributed generation in the form of solar panels and residential wind turbines to demonstrate the broad range of energy options possible in the future.

Source: Department of Energy’s WINDExchange Newsletter

The Highs and Lows for Solar in 2020: Wrapping up the biggest stories of a chaotic year.

By Emma Foehringer Merchant, Greentech Media

Joe Biden’s win presents big upside for the solar industry. The candidate campaigned on a national plan to reach 100 percent clean electricity by 2035. Solar offers a key technology to achieve that goal, with 2020 marking its second year in a row to claim the largest share of new generating capacity of any resource. Read more here.

ALSO PUBLISHED BY GREENTECH MEDIA

10 Victories for Virtual Power Plants in 2020, by Julian Spector
This concept goes by various names — virtual power plants, flexible loads, behind-the-meter networks — and encompasses tools like rooftop solar, batteries, smart thermostats, smart appliances and electric vehicle chargers. Though small individually, distributed energy resources are projected to grow to 387 gigawatts in the next five years, according to research by Wood Mackenzie.

So, What Exactly Are Virtual Power Plants?

Greentech Media’s Must-Read Grid Edge Stories of 2020, by Jeff St. John
By far the biggest grid edge story of 2020 was the continued commitment of U.S. utilities to midcentury decarbonization goals — or more pertinently, those utilities that aren’t already facing state-level mandates to eliminate their carbon footprints.

Mayors unveil $60B plan to support Midwest energy transition

By Chris Teale, Smart Cities Dive

Pittsburgh Mayor Bill Peduto and other mayors from Kentucky, Ohio and West Virginia unveiled last week the “Marshall Plan for Middle America,” a $60 billion blueprint to help the region transition away from fossil fuels toward a greener, more sustainable economy.

The nonpartisan plan from academics and policy researchers calls for federal and private funds to provide $15 billion in block grants to local governments for retrofits and conversions to make buildings more energy efficient; $15 billion in low-interest loans for clean energy production; $15 billion in tax incentives for manufacturers to develop clean energy equipment; and $15 billion in workforce development funds to help further understanding of clean energy. The plan comes as the Ohio Valley region is projected to lose 100,000 jobs in the next few years with the decline of the fossil fuel industry. Read more here.

NRDC EXPERT BLOG POST

St. Louis Centers Equity in Innovative Green Job Training, by Stephen Schaffer, American Cities Climate Strategist

St. Louis began leading the charge on climate action in the Midwest when it created its Sustainability Plan in 2013. Since then, under the leadership of Mayor Lyda Krewson, the city has moved from strength to strength: a benchmarking ordinance in 2017; adoption of the International Energy Conservation Code in 2018; a solar readiness standard for new buildings in 2019; and a building energy performance standard that just passed in May 2020, making St. Louis the first among Midwest cities to do so.

FROM GREEN BIZ

It’s time to bridge the clean energy partisan divide, by Sarah Golden
The Biden administration has the most bullish climate plan America has seen, and the clean energy sector is about to be thrust into the limelight. Instead of infighting, clean energy factions should use this moment to push and pull each other towards rapid decarbonization. Enviros aren’t an impediment; they’re an asset. They provide a guiding light to push all companies and communities to do more, to move faster and to never pretend half measures are complete solutions. They provide cover for politicians to be ambitious. And they remind all of us that anything less than a holistic solution isn’t a solution. 

ADDITIONAL RECOMMENDED READING

OPPD NEWS RELEASE

Another Year Of No General Rate Increase For OPPD Customers
Omaha Public Power District remains committed to competitive rates, and that’s reflected in the utility’s preliminary Corporate Operating Plan (COP) for 2021. For the fifth straight year, customers will see no rate increase. The COP was presented to the OPPD Board of Directors at this week’s committee meetings, ahead of their monthly meeting today.

The board also received an update on Power with Purpose (PwP) this week. The project team continues to evaluate proposals to build 400 to 600 megawatts of utility-scale solar. They have narrowed in on seven projects in or near OPPD’s service territory. The team is currently completing technical, commercial, and contract analysis. And they’re providing solar technology outreach and education to leaders of Washington, Cass, Burt, Saunders, and Nemaha Counties, among others.

It’s Time to Incentivize Residential Heat Pumps

By Claire McKenna, Amar Shah, Mark Silberg
Rocky Mountain Institute

Heat pump technology is a particularly efficient way to heat a home, delivering two to four times more heating energy than the electricity it consumes. As of 2020, replacing a gas furnace with a heat pump will reduce carbon emissions in 46 of 48 states (99 percent of US households); all but Wyoming and Utah, which remain heavily reliant on coal-fired electricity.

Our analysis found two key reasons why a heat pump purchased today will have lower carbon emissions than a gas furnace over the 15-year appliance lifetime: (1) modern heat pumps are significantly more efficient than gas furnaces, even in cold climates; (2) the electricity sector has reached a tipping point in reducing carbon emissions. Read more here.

LOCAL INCENTIVES

Below are links to our three major utilities’ heat pump incentives. If you aren’t a customer, search your local utility company’s website for any available rebates.

Nebraska Public Power District

Omaha Public Power District 

Lincoln Electric System 

FEDERAL INVESTMENT TAX CREDIT

Geothermal heat pumps are eligible for the federal investment tax credit (ITC), which is 26% to the end of 2020: Residential Renewable Energy Tax Credit (ITC)

Source: Database of State Incentives for Renewables & Efficiency (DSIRE)

Operating expenses are down and useful lifespans are up on utility-scale solar projects

By Kelly Pickerel, Solar Power World

The expected useful life of utility-scale solar PV projects has increased over time, while anticipated operating expenditures (OpEx) have decreased, according to new research from Berkeley Lab. Findings are detailed in a new paper: “Benchmarking Utility-Scale PV Operational Expenses and Project Lifetimes: Results from a Survey of U.S. Solar Industry Professionals.”

Useful life and OpEx are important (but sometimes overlooked) drivers of the levelized cost and profitability of utility-scale PV plants. This paper draws on a survey of U.S. solar industry professionals and other sources to clarify trends in these cost factors. Key findings include: Continue reading here.

TAX CREDITS EXTENSION

ADDITIONAL RECOMMENDED READING 

Previously Posted Resource On Virtual PPAs
Introduction to the Virtual Power Purchase Agreement, Rocky Mountain Institute Report
This report serves as an introduction to the virtual power purchase agreement (VPPA)—its place in the off-site renewable energy procurement market, how the VPPA works, and why VPPAs have been a popular instrument in the United States thus far. 

RECYCLING MARKET REPORT

Solar Panel Recycling Market, Transparency Market Research
An increased number of end-of-life solar panels are creating a demand for recycling activities in the U.S. Moreover, analysts of Transparency Market Research (TMR) opine that the U.S. is anticipated to account for the highest number of end-of-life solar panels in the upcoming decades after China. Hence, companies in the solar panel recycling market are focusing on value-grab opportunities in the U.S. As such, the market is estimated to reach a value of ~US$ 600 Mn by the end of 2027.

Solar companies invest in acres in the Midwest

Kenosha News

More and more rural electric cooperatives and individual farmers are turning to solar power as an energy alternative. Brady Boell, director of safety and member services for the Raccoon Valley Electric Cooperative, says his cooperative has built five sites in Iowa since October 2018. “The idea was to offer members a way to invest in solar energy,” he says. “Many cannot install these arrays on their own property, so this allows them to invest.” Solar energy use has rapidly grown over the past two years, says Tim Dwight, president of the Iowa Solar Trade Association and owner of Integrated Power Corporation, a solar energy installer. Read more here.

Additional Recommended Reading
Bill refines solar rules with input from pork producers, Kenosha Times

Photo Credit: Raccoon Valley Electric Cooperative

DEPARTMENT OF ENERGY GUIDES FOR SOLAR & SMALL WIND PROJECTS

NRECA RESOURCES

National Rural Electric Cooperative Association (NRECA) Renewable Energy Resources

Previously Posted News Release

DOE Selects NRECA for Wind Energy Research Initiative
The Department of Energy has selected the National Rural Electric Cooperative Association (NRECA) to research small-scale, community-based wind energy solutions that can be deployed by electric cooperatives. NRECA will team with co-ops around the country to evaluate and deploy diverse types of distributed wind projects. Like NRECA’s solar deployment project, a similar DOE-funded program that accelerated utility-scale solar at co-ops across rural America, NRECA expects this project to increase the number of electric cooperatives incorporating wind applications into their resource planning. DOE has identified high technical potential for “hundreds of thousands of turbines” totaling more than 10 gigawatts of electric capacity on rural distribution grids. 

CO-LOCATION RESOURCES

Co-locating apiaries, pollinator-friendly plants, and industrial hemp with solar and wind projects can provide extra income for farmers and improve Nebraska’s honey production and retail sales, among other benefits. Click here and scroll down for a list of resources.

INCENTIVES & DEPRECIATION

Incentives for Homeowners & Businesses
Business and residential solar projects qualify for the federal solar Investment Tax Credit (ITC), which is now 26% through December 31, 2020.

 

 

All Incentives for Renewables & Efficiency

Resource: Database of State Incentives for Renewables & Efficiency (DSIRE)

Business Equipment Depreciation Resources

LAND LEASES

Solar and wind farm leases create extra income for farmers and other landowners and provide valuable tax revenues for local communities.

Demand from first-time, repeat buyers powers new era of large-scale renewables growth

By Monica JaburgDeputy Director, Communications and Media,
Renewable Energy Buyers Alliance. Published by GreenBiz.

Large-scale energy buyers are driving the energy landscape shift by collectively voicing their demand for accessible clean energy options to decrease their carbon impacts. In 2018 alone, the group accounted for 6.3 gigawatts in announced renewable energy deals — an amount equal to over 60 percent of all new renewables generation added in the United States last year.

However, the U.S. commercial and industrial sector is still the most energy-intensive, accounting for about 50 percent of all power consumption and 34 percent of all greenhouse gas (GHG) emissions. So what’s next for this community when it comes to advance its clean energy and GHG emissions reduction mandates? Read more here.

ADDITIONAL RECOMMENDED READING

TRI-STATE NEWS

IN NEBRASKA

  • Excelsior to buy 109 MW of Nebraska wind capacity from Invenergy, Renewables Now
    Prairie Breeze II and Prairie Breeze III initiated operations in late 2015 and early 2016, respectively. They have 25-year power purchase agreements (PPA) in place with Lincoln Electric System and City of Grand Island. The transaction is seen to be completed next month. Bank of America Merrill Lynch is the tax equity investor in the projects, the announcement says.
  • Wind costs’ decline aids rural Nebraska, Letter to the Editor, Lincoln Journal Star, by Cody Smith, Ames, Iowa Policy associate, Center for Rural Affairs

OF POTENTIAL INTEREST TO NEBRASKA SOLAR BUSINESSES

Solar Jobs Census: The Solar Foundation is again collecting data for their annual National Solar Jobs Census. This confidential survey will take fifteen minutes of your time and will provide essential feedback to ensure that your company’s contributions to our economy are well
understood by policymakers and the general public. Deadline: November 15, 2019.
Complete the survey here.

LEGISLATION

  • SEIA garners industry support and lobbies for ITC extension, Solar Power World
    Solar contractors are on a time crunch to fit as many installations into 2019 as they can, because in 2020 the solar Investment Tax Credit (ITC) starts to lose its effectiveness. The ITC is a federal tax subsidy that, in its current capacity, gives solar system owners a 30% return on a solar project’s total tax liability in any market segment. In 2020 the ITC is slated to drop to 26%, 22% in 2021 and in 2022 it will decrease to a 10% subsidy for commercial and utility markets, and zero for residential, indefinitely. That is, unless, the renewables subsidy receives another extension. SEIA’s Campaign: Defend the Solar ITC
  • Legislation aims to accelerate geothermal energy development, American Public Power Association

EV NEWS

GM sells shuttered Ohio plant to EV truck start-up, Reuters

INSIDE CLIMATE NEWS – EXXON TRIAL

Exxon’s Climate Fraud Trial Nears Its End: What Does the State Have to Prove to Win?
With only days left before the two sides deliver their closing arguments, here’s a look at what the attorney general needs to prove and how Exxon is fighting the claims.

See Also

Previously Posted

Yale University Survey: Yale Poll Finds Majority of Americans Think ExxonMobil, BP, Chevron and Other Fossil Fuel Companies Should Pay for Climate Change Damage, Union of Concerned Scientists Blog. new survey by Yale University’s Program on Climate Change Communications and supported by the Union of Concerned Scientists (UCS) finds that most Americans (57 percent) think fossil fuel companies should pay for the damages caused by global warming.

Interactive Map – Click link and scroll down: This tool maps variations in Americans’ opinions about existing or potential lawsuits against fossil fuel companies.

Nebraska Data

  • A search by state shows that 50% of Nebraskans surveyed hold fossil fuel companies responsible for the local damage of global warming.
  • Several searches by county show the following results:

Cherry County: 58%
Colfax County: 56%
Dawes County: 57%
Douglas County: 56%
Lancaster County: 55%
Thurston County: 61%

More Than 70 Associations Back Renewable Energy Extension Act

Solar Energy Industries Association News Release

More than 70 organizations representing farmers, homebuilders, environmental groups, electric cooperatives and a variety of other industries sent a letter to Congress urging them to pass the Renewable Energy Extension Act.

“It’s not every day that you see higher ed advocates and farm families agree on energy policy,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA). “Extending the Investment Tax Credit is common sense and this effort shows us just how many people, communities, and interests it touches. Whether you want to reduce emissions, stimulate economic investment, or create jobs, we’re showing Congress that the ITC is a proven policy that can do all of those things.” Read the entire news release here.

Join SEIA’s campaign to extend the ITC: seia.org/defendtheitc

Hundreds of Mayors Call on Congress to Extend the Solar Investment Tax Credit

Solar Energy Industries Association News Release

WASHINGTON, D.C. – A bipartisan group of 231 mayors from Tacoma, Wash to Ft. Lauderdale, Fla. sent a letter to Congress today urging them to pass the Renewable Energy Extension Act (HR 3961/S. 2289), a five-year extension of the solar Investment Tax Credit (ITC).

“More than 200 mayors from 39 states are stepping up to defend the ITC,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA). “Mayors are increasingly turning to solar energy to fight the effects of climate change and generate millions of dollars of private investment in their cities. We’re thrilled to have their support as we fight to preserve one of the most successful clean energy policies in U.S. history.” Read the entire news release, which includes several statements from mayors, here.

Learn more about SEIA’s fight to defend the solar ITC here.

Top Senate Democrat calls for permanent renewable energy, storage, EV tax credits

By Christian Roselund, PV Magazine

Last Thursday, Senator Chuck Schumer (D-NY), the Democratic Leader in the Senate, sent a letter to President Trump demanding that any infrastructure package taken up in 2019 include “policies and funding to transition to a clean energy economy and mitigate the risks that the United States is already facing due to climate change.”

And in a list of policies that Schumer says should be included, the top item is “permanent tax incentives for domestic production of clean electricity and storage, energy efficient homes and commercial buildings, electric vehicles, and modernizing the electric grid.” In concrete terms, this could mean an extension of the Investment Tax Credit (ITC) for solar and energy storage, the Production Tax Credit (PTC) for wind and the federal electric vehicle (EV) tax credit. Read more here.

Photo Credit: Wikimedia Commons

ENERGY STORAGE ITC: AWEA NEWS RELEASE

Yesterday a coalition of more than 150 companies and energy groups issued a letter to Congressional leadership asking for a stand-alone storage Investment Tax Credit (ITC). The Energy Storage Tax Incentive and Deployment Act would ensure a level playing field for energy storage to compete with all other energy resources currently eligible for the ITC.

The American Wind Energy Association (AWEA) signed onto the letter and issued the following statement in support:

“Energy storage technology will play an important role as we build an even more affordable and reliable electricity grid for the 21st Century,” said Tom Kiernan, CEO of AWEA. “We’re asking Congress to reduce uncertainty for investors by creating a stand-alone energy storage ITC for which all storage technologies can qualify. A level playing field for the full range of storage technologies will ensure consumers benefit from competition and will boost job-creating investment in infrastructure projects, including new opportunities for wind farm development.”
Read the entire news release here.