[House Hearing, 110 Congress]
[From the U.S. Government Publishing Office]
RESEARCH, EDUCATION AND TRAINING
PROGRAMS TO FACILITATE ADOPTION
OF SOLAR ENERGY TECHNOLOGIES
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON ENERGY AND
ENVIRONMENT
COMMITTEE ON SCIENCE AND TECHNOLOGY
HOUSE OF REPRESENTATIVES
ONE HUNDRED TENTH CONGRESS
FIRST SESSION
__________
JUNE 19, 2007
__________
Serial No. 110-41
__________
Printed for the use of the Committee on Science and Technology
Available via the World Wide Web: http://www.science.house.gov
______
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COMMITTEE ON SCIENCE AND TECHNOLOGY
HON. BART GORDON, Tennessee, Chairman
JERRY F. COSTELLO, Illinois RALPH M. HALL, Texas
EDDIE BERNICE JOHNSON, Texas F. JAMES SENSENBRENNER JR.,
LYNN C. WOOLSEY, California Wisconsin
MARK UDALL, Colorado LAMAR S. SMITH, Texas
DAVID WU, Oregon DANA ROHRABACHER, California
BRIAN BAIRD, Washington KEN CALVERT, California
BRAD MILLER, North Carolina ROSCOE G. BARTLETT, Maryland
DANIEL LIPINSKI, Illinois VERNON J. EHLERS, Michigan
NICK LAMPSON, Texas FRANK D. LUCAS, Oklahoma
GABRIELLE GIFFORDS, Arizona JUDY BIGGERT, Illinois
JERRY MCNERNEY, California W. TODD AKIN, Missouri
PAUL KANJORSKI, Pennsylvania JO BONNER, Alabama
DARLENE HOOLEY, Oregon TOM FEENEY, Florida
STEVEN R. ROTHMAN, New Jersey RANDY NEUGEBAUER, Texas
MICHAEL M. HONDA, California BOB INGLIS, South Carolina
JIM MATHESON, Utah DAVID G. REICHERT, Washington
MIKE ROSS, Arkansas MICHAEL T. MCCAUL, Texas
BEN CHANDLER, Kentucky MARIO DIAZ-BALART, Florida
RUSS CARNAHAN, Missouri PHIL GINGREY, Georgia
CHARLIE MELANCON, Louisiana BRIAN P. BILBRAY, California
BARON P. HILL, Indiana ADRIAN SMITH, Nebraska
HARRY E. MITCHELL, Arizona VACANCY
CHARLES A. WILSON, Ohio
------
Subcommittee on Energy and Environment
HON. NICK LAMPSON, Texas, Chairman
JERRY F. COSTELLO, Illinois BOB INGLIS, South Carolina
LYNN C. WOOLSEY, California ROSCOE G. BARTLETT, Maryland
DANIEL LIPINSKI, Illinois JUDY BIGGERT, Illinois
GABRIELLE GIFFORDS, Arizona W. TODD AKIN, Missouri
JERRY MCNERNEY, California RANDY NEUGEBAUER, Texas
MARK UDALL, Colorado MICHAEL T. MCCAUL, Texas
BRIAN BAIRD, Washington MARIO DIAZ-BALART, Florida
PAUL KANJORSKI, Pennsylvania
BART GORDON, Tennessee RALPH M. HALL, Texas
JEAN FRUCI Democratic Staff Director
CHRIS KING Democratic Professional Staff Member
SHIMERE WILLIAMS Democratic Professional Staff Member
ELAINE PAULIONIS Democratic Professional Staff Member
ADAM ROSENBERG Democratic Professional Staff Member
ELIZABETH STACK Republican Professional Staff Member
STACEY STEEP Research Assistant
C O N T E N T S
June 19, 2007
Page
Witness List..................................................... 2
Hearing Charter.................................................. 3
Opening Statements
Prepared Statement by Representative Nick Lampson, Chairman,
Subcommittee on Energy and Environment, Committee on Science
and Technology, U.S. House of Representatives.................. 8
Statement by Representative Gabrielle Giffords, Vice Chair,
Subcommittee on Energy and Environment, Committee on Science
and Technology, U.S. House of Representatives.................. 5
Written Statement............................................ 6
Statement by Representative Bob Inglis, Ranking Minority Member,
Subcommittee on Energy and Environment, Committee on Science
and Technology, U.S. House of Representatives.................. 7
Written Statement............................................ 7
Prepared Statement by Representative Jerry F. Costello, Member,
Subcommittee on Energy and Environment, Committee on Science
and Technology, U.S. House of Representatives.................. 8
Witnesses:
Mr. Herbert T. Hayden, Solar Technology Coordinator, Arizona
Public Service Company, Phoenix, Arizona
Oral Statement............................................... 9
Written Statement............................................ 11
Biography.................................................... 14
Mr. Rhone Resch, President, Solar Energy Industries Association
Oral Statement............................................... 15
Written Statement............................................ 17
Biography.................................................... 23
Ms. Jane M. Weissman, Executive Director, Interstate Renewable
Energy Council; Vice Chair, North American Board of Certified
Energy Practitioners
Oral Statement............................................... 24
Written Statement............................................ 25
Biography.................................................... 28
Mr. Joseph T. Sarubbi, Professor/Department Chair, Building
Systems Technology Department, Hudson Valley Community College
Oral Statement............................................... 29
Written Statement............................................ 31
Biography.................................................... 40
Dr. Daniel E. Arvizu, Director, National Renewable Energy
Laboratory, U.S. Department of Energy
Oral Statement............................................... 41
Written Statement............................................ 43
Discussion
Solar Energy in Germany........................................ 49
Solar Check-off Program........................................ 50
Comparison of Solar Energy to ANWR............................. 51
More on Solar Check-off Program................................ 52
Manufacturing Cost for Solar Energy............................ 53
Tax Incentives for Solar Energy................................ 54
Tax Incentives and Net Metering of Solar Energy................ 55
More on Solar Check-off Program................................ 55
Storage and Efficiency of Solar Energy......................... 56
Characterization of Support for Solar Energy................... 57
Comparison of Centralized to Distributed Solar Energy.......... 58
Net Metering................................................... 58
Reliability of Solar Energy.................................... 59
Solar Workforce Training Program............................... 59
More on Solar Workforce Training............................... 61
Efficiency of Solar Energy..................................... 63
Storage for Solar Energy....................................... 64
Conversion to Hydrogen......................................... 65
More on Solar Check-off Program................................ 65
More on Solar Check-off Program................................ 67
More on Storage for Solar...................................... 68
Water Use for Concentrating Solar Power........................ 69
Concentrating Solar Power...................................... 70
More on Solar Workforce Training............................... 71
More on Solar Check-off Program................................ 72
Appendix 1: Answers to Post-Hearing Questions
Mr. Herbert T. Hayden, Solar Technology Coordinator, Arizona
Public Service Company, Phoenix, Arizona....................... 76
Mr. Rhone Resch, President, Solar Energy Industries Association.. 80
Ms. Jane M. Weissman, Executive Director, Interstate Renewable
Energy Council; Vice Chair, North American Board of Certified
Energy Practitioners........................................... 83
Mr. Joseph T. Sarubbi, Professor/Department Chair, Building
Systems Technology Department, Hudson Valley Community College. 85
Dr. Daniel E. Arvizu, Director, National Renewable Energy
Laboratory, U.S. Department of Energy.......................... 88
Appendix 2: Additional Material for the Record
Discussion Draft, June 14, 2007.................................. 92
RESEARCH, EDUCATION AND TRAINING PROGRAMS TO FACILITATE ADOPTION OF
SOLAR ENERGY TECHNOLOGIES
----------
TUESDAY, JUNE 19, 2007
House of Representatives,
Subcommittee on Energy and Environment,
Committee on Science and Technology,
Washington, DC.
The Subcommittee met, pursuant to call, at 10:05 a.m., in
Room 2318 of the Rayburn House Office Building, Hon. Gabrielle
Giffords [Vice-Chair of the Subcommittee] presiding.
hearing charter
SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
COMMITTEE ON SCIENCE AND TECHNOLOGY
U.S. HOUSE OF REPRESENTATIVES
Research, Education and Training
Programs to Facilitate Adoption
of Solar Energy Technologies
tuesday, june 19, 2007
10:00 a.m.-12:00 p.m.
2318 rayburn house office building
Purpose
On Tuesday, June 19, 2007 the House Committee on Science &
Technology, Subcommittee on Energy and Environment will hold a hearing
to receive testimony on the Discussion Draft sponsored by Rep. Giffords
which establishes several important research, education, and training
programs to facilitate the adoption of solar energy technologies.
This bill addresses issues in solar research, education, and
training not covered by the Energy Policy Act of 2005. These include a
research and development program on thermal energy storage technologies
for concentrating solar power, a study to determine the necessary steps
to integrate concentrating solar power plants with the regional and
national electric grid, a program to ensure that a sufficient number of
people are properly trained to install and maintain solar energy
equipment, and the establishment of a solar energy research and
information program, modeled on similar such programs for the beef and
dairy industries. The program is supported by pooling funds from the
private sector for the research and promotion of the solar power
industry as a whole.
This hearing will seek to address the following issues relating to
the discussion Draft:
Is thermal energy storage technology important to the
viability of concentrating solar power? Would the increased
research and development on thermal storage proposed
significantly accelerate the advancement of this technology?
Would a study on how to integrate concentrating solar
power plants with the regional and national electric grid be
useful?
Is there a sufficient number of people trained to
install and maintain solar energy equipment to meet the current
and future needs of the solar industry? Are such programs
necessary or useful for prospective solar panel installers and
potential consumers?
How would the solar research and information program
for the solar industry authorized in the bill help to support
research and promote the adoption of solar power across the
Nation?
Background
The Discussion Draft contains 4 basic components, as described
above. The first two are specifically related to concentrating solar
power (CSP). A 2006 report by the Western Governors' Association
assessed the overall near-term potential for CSP capacity in the
American Southwest, taking into account areas of high solar ray
intensity, near-level land, non-sensitivity to CSP use, and proximity
to transmission. The resulting set of potential plant sites totaled 200
GW of potential power production. To put this in perspective, the
electric generating capacity of the entire United States is currently
about 1,000 GW. Some significant challenges remain to widespread
implementation of CSP, however.
CSP plants produce electric power by converting the sun's energy
into high-temperature heat using various mirror configurations. The
heat is then channeled through a conventional generator. These plants
consist of two parts: one that collects solar energy and converts it to
heat, and another that converts heat energy to electricity. Thermal
energy storage technology allows this heat to be retained for later use
in generating electricity, such as during periods of passing clouds or
into the evening. The Energy Policy Act of 2005 establishes a CSP
research and development program, but storage is not included in the
language. Section 3 of the Discussion Draft authorizes a program
dedicated to advancing research and development in thermal energy
storage for CSP. Section 4 of the Discussion Draft tasks the Department
of Energy (DOE) with conducting a study on methods to integrate
concentrating solar power with regional electricity transmission
systems, and to identify new transmission or transmission upgrades
needed to bring electricity from high concentrating solar power
resource areas to growing electric power load centers throughout the
United States. The results of this study will help define a roadmap for
large-scale implementation of CSP to meet the Nation's growing energy
needs.
The other two components of Discussion Draft address the solar
industry in general. Having a certified, well-trained workforce to
install and maintain solar energy products is critical to the success
of the industry. Some states, such as New York and Florida, working
with local community colleges, businesses, the Interstate Renewable
Energy Council (IREC), and the North American Board of Certified Energy
Practitioners (NABCEP) have recently established successful programs to
create a workforce to meet local demand, however there is currently no
federal program to help establish or improve these training programs
across the Nation. Section 5 creates such a program, authorizing $10
million in each year from FY08 through FY12. This section instructs DOE
to ensure sufficient geographic distribution of training programs
nationally, and to only award grants for programs certified by the
Institute of Sustainable Power or equivalent industry-accepted quality-
control certification institution, or for new and growing programs with
a credible path to certification.
A successful model for promoting a particular U.S. commodity,
rather than an individual brand, has been demonstrated by the
agriculture industry. Funded entirely by a small portion of industry
revenues and overseen by the USDA, organizations such as the
Cattlemen's Beef Promotion and Research Board and the National Dairy
Board were created to coordinate mutually beneficial research efforts
and increase awareness of their industry as a whole, as well as ensure
that consumers knew the proper certification standards to seek out
before making a purchase. Modeled after these examples, Sections 6-13
create the Solar Industries Research and Promotion Board, overseen by
DOE, which would similarly plan and conduct mutually beneficial solar
industry research efforts, increase awareness of solar as an energy
option across the Nation, and ensure that consumers know what
certifications a technician should have for installation or maintenance
of solar energy equipment. The Solar Energy Industries Association
(SEIA) has expressed a strong interest in creating such a program.
Witnesses
Mr. Herbert Hayden is the Arizona Public Service
(APS) Solar Technology Coordinator. Mr. Hayden will testify on
how thermal storage research and development and the bill's
proposed studies on grid integration and water usage will help
advance the implementation of concentrating solar power.
Mr. Rhone Resch is the President of the Solar Energy
Industries Association (SEIA). Mr. Resch will testify on how
the proposed research and information for the solar industry
would help to support research and promote the adoption of
solar power across the Nation.
Ms. Jane Weissman is the Executive Director of the
Interstate Renewable Energy Council (IREC), and the Vice-Chair
of the North American Board of Certified Energy Practitioners
(NABCEP). Ms. Weissman will testify on the current status of
workforce training in solar installation and maintenance across
the country, and the need for a national solar workforce
training program.
Prof. Joseph Sarubbi is the Chair of the Building
Systems Technology Department at Hudson Valley Community
College. Prof. Sarubbi will testify on his ground-level
experience in creating a solar workforce training program,
including his partnership with local businesses and the State
of New York in developing a successful curriculum.
Dr. David Arvizu is the Director of the Department of
Energy's National Renewable Energy Laboratory. Dr. Arvizu will
testify on the DOE's current solar research and development
activities, and on his views regarding the proposed
legislation.
Ms. Giffords. Welcome to today's hearing entitled
``Research, Education and Training Programs to Facilitate
Adoption of Solar Energy Technologies.'' I want to thank
Chairman Gordon, Ranking Member Hall, Chairman Lampson and
Ranking Member Inglis for holding this hearing on solar energy
this morning. Solar energy offers one of the best solutions to
the greatest challenges facing our nation, global warming,
dependence on foreign oil and concerns about American
competitiveness.
It has tremendous potential across the United States,
especially in regions like Southern Arizona, where we have over
300 days of sunshine every single year.
Solar energy, as we all know, is a nonpartisan issue. The
sun beats down on Republicans and Democrats and Independents
with equal intensity, and we could all benefit from harnessing
the power of the sun. It stimulates business development. It
creates new jobs, helps protect our environment, and promotes
energy independence.
My legislation, entitled the Solar Energy Research and
Advancement Act of 2007, will move solar energy forward by
targeting some of the gaps that several experts have identified
in our national solar energy strategy.
Today we are going to hear from experts on the discussion
draft that was earlier circulated. This is a great first step
in the overall solar energy agenda for the 110th Congress. I am
considering other pieces of legislation and I know that other
House committees are looking at solar-related bills as well. As
we move forward, the cumulative efforts to focus on the use of
solar energy should be very positive.
Let me briefly summarize the four components of this bill.
The first component would establish a Thermal Energy Storage
Research and Development Program within the Department of
Energy. This will help us solve perhaps the most significant
problem with concentrated solar power technology: energy
storage. We need more advanced technology so that we can store
solar energy produced during the day and use it at night or on
a cloudy day. This is all about energy reliability and
viability. We need to assure the public that they will have
enough electricity when the sun goes down and when they need
it.
The second component would require DOE to conduct two
concentrating solar power commercial application studies. One
would study methods to integrate concentrated solar power
energy into regional electricity transmission systems. The best
time of the day to produce and use solar energy is from 10 a.m.
to 5 p.m. We need to research how to connect the major solar
power plants to the electric grid, relieve expensive demand on
electric utilities and use solar energy during these peak
hours. It also makes sense to examine how to bring electricity
from high solar resource areas like Arizona and Nevada to other
parts of the United States that have other energy needs as
well.
The other study would require DOE to inform Congress on
methods to reduce the amount of water consumed by concentrating
solar power systems. CSP has its greatest potential in the
southwest United States, and like all power plants, it requires
tremendous use of water. Given the strain on water resources
already in this region, we must research ways to research water
consumption so that we can realize the benefits of CSP
technology.
The third component of the legislation will authorize a
competitive grant program at DOE to create and strengthen solar
industry workforce training and internship programs in
installation, operation and maintenance of solar energy
products. The goal of this program is to ensure an adequate
supply of well-trained individuals to support the expansion of
the solar energy industry. If we want to increase our use of
solar energy, we have to make sure that we have a trained and
qualified workforce. This section will promote job growth in a
fast-growing solar industry.
Lastly, we have got beef for dinner and we have all got
milk, but who has gone solar? The fourth component of this bill
will create a Solar Energy Industries Research and Commercial
Application Board to plan and coordinate projects of research
and commercial application, certification, information and
other purposes of benefit to the application of solar
technologies and educate people on why we need to be doing
this. This public-private partnership will also help the
general public understand how they can benefit from solar
energy technology. I want to note that this program will be
paid for by the solar industry and will cost the taxpayer
absolutely nothing. It is important to my constituents and all
the other people's constituents as well.
I look forward to working with my colleagues on both sides
of the aisle to pass this important legislation.
[The prepared statement of Ms. Giffords follows:]
Prepared Statement of Representative Gabrielle Giffords
I want to thank Chairman Gordon, Ranking Member Hall, Chairman
Lampson, and Ranking Member Inglis for holding this hearing on solar
energy today.
Solar energy offers one of the best solutions to the greatest
challenges facing our nation--global warming, dependence on foreign
oil, and concerns about American competitiveness.
It has tremendous potential across the United States, especially in
regions like Southern Arizona, where we have over 300 days of sunshine
every year.
Solar energy is a non-partisan issue. The sun beats down on
Democrats, Republicans, and Independents with equal intensity, and we
can all benefit from harnessing the power of the sun.
It stimulates business development, creates new jobs, helps protect
our environment, and promotes energy independence.
My legislation, entitled the Solar Energy Research and Advancement
Act of 2007, will move solar energy forward by targeting some of the
gaps that several experts have identified in our national solar energy
strategy.
Today, we will hear expert opinions on the discussion draft that
was circulated.
This is a great first step in the overall solar energy agenda for
the 110th Congress. I am considering other pieces of legislation, and I
know that other House committees are looking at solar-related bills. As
we move forward, the cumulative efforts to advance the use of solar
energy should be very positive.
Let me briefly summarize the four components of this bill.
The first component would establish a ``Thermal Energy Storage
Research and Development Program'' within the Department of Energy.
This will help us solve perhaps the most significant problem with
concentrating solar power technology: energy storage. We need more
advanced technology so that we can store solar energy produced during
the day and use it at night or on a cloudy day. This is all about
energy reliability and viability. We need to assure the public that
they will have enough electricity when the sun goes down.
The second component would require DOE to conduct two
``Concentrating Solar Power Commercial Application Studies.''
One would study methods to integrate concentrating solar power
energy into regional electricity transmission systems. The best time of
the day to produce and use solar energy is from 10 a.m.-5 p.m. We need
to research how to connect major solar power plants to the electric
grid, relieve expensive demand on electric utilities, and use solar
energy during these peak hours. It also makes sense to examine how to
bring electricity from high solar resource areas, like Arizona and
Nevada, to meet energy needs throughout the United States.
The other study would require DOE to inform Congress on methods to
reduce the amount of water consumed by concentrating solar power
systems. CSP has its greatest potential in the Southwest United States,
and like all power plants, it requires the use of water. Given the
strain on water resources in this region, we must research ways to
reduce water consumption so that we can realize the benefits of CSP
technology.
The third component of this legislation will authorize a
competitive grant program at DOE to create and strengthen solar
industry workforce training and internship programs in installation,
operation, and maintenance of solar energy products. The goal of this
program is to ensure an adequate supply of well-trained individuals to
support the expansion of the solar energy industry. If we want to
increase our use of solar energy, we have got to make sure that we have
a trained, qualified workforce. This section will promote job growth in
the fast-growing solar industry.
Lastly, we've got beef for dinner, and we've all got milk. But
who's gone solar? The fourth component of this bill will create a Solar
Energy Industries Research and Commercial Application Board to plan and
coordinate projects of research, commercial application, certification,
information, and other purposes of benefit to the application of solar
technologies. This public-private partnership will also help the
general public understand how they can benefit from solar energy
technology. I want to note that this program will be paid for by the
solar industry and will cost the taxpayer absolutely nothing.
I look forward to working with my colleagues on both sides of the
aisle to pass this important legislation.
Ms. Giffords. The Chair now recognizes the Ranking Member
from South Carolina, Mr. Inglis, for an opening statement.
Mr. Inglis. I thank the Chair for holding this legislative
hearing on facilitating the adoption of solar energy
technologies.
Solar energy occupies just a sliver of the global energy
market. However, when you consider the Earth receives more
energy from the sun in just one hour than the world uses in a
whole year, it makes sense that we should look into making that
thin sliver into a big piece of the energy pie. With some
advancements in technology and conversion efficiencies, solar
will fit the bill for our energy goals: clean, renewable and
abundant.
Today we are going to discuss draft legislation that seeks
to address ways that the Federal Government can help speed
commercial viability of solar energy. I look forward to hearing
from our expert panel of witnesses as to how we might meet our
goals.
Madam Chairman, as we discuss these proposals today and
move to markup, I hope we give adequate time to make this bill
as good as it can be. America's scientists, engineers,
inventors and entrepreneurs realize the potential of solar
power and other renewable sources, and I hope we can set
policies that facilitate the development, the best development
of those sources.
Thank you again for holding the hearing and I look forward
to hearing from our witnesses.
[The prepared statement of Mr. Inglis follows:]
Prepared Statement of Representative Bob Inglis
Good afternoon. Thank you, Mr. Chairman, for holding this
legislative hearing on facilitating the adoption of solar energy
technologies.
Solar energy occupies just a sliver of the global energy market.
However, when you consider that the Earth receives more energy from the
sun in just one hour than the world uses in a whole year, it makes
sense that we should look into making that thin sliver into a big piece
of the energy pie. With some advancements in technology and conversion
efficiencies, solar will fit the bill for our energy goals: clean,
renewable, and abundant.
Today, we're going to discuss draft legislation that seeks to
address ways that the Federal Government can help speed commercial
viability of solar energy. I look forward to hearing from our expert
panel of witnesses as to how we might meet our goals.
Mr. Chairman, as we discuss this proposal today, and move to
markup, I hope we give adequate time to make the bill as good as it can
be. America's scientists, engineers, inventors, and entrepreneurs
realize the potential of solar power and other renewable sources, and I
hope we can set policies that facilitate the development of these
sources.
Thank you again, Mr. Chairman and I look forward to hearing from
our witnesses.
Ms. Giffords. Thank you, Mr. Inglis.
If there are Members who wish to submit additional opening
statements, your statements will be added to the record at this
point.
[The prepared statement of Chairman Lampson follows:]
Prepared Statement of Chairman Nick Lampson
I am very pleased to be here this morning to discuss the
legislation proposed by my colleague from Arizona, Rep. Giffords. Solar
energy holds great promise and potential to deliver clean, affordable
electricity to homes and businesses across the Nation.
Rep. Giffords has identified several areas where federal support
could further the goal of diversifying our energy supply by expanding
the adoption of solar energy technologies. The basic and applied
research and development programs that we have invested in through the
Department of Energy over the years have yielded significant
advancements in solar energy technologies. Our challenge now is to move
these technologies into the market place more aggressively.
I also serve on the Committee on Agriculture. In the agricultural
sector, USDA has managed numerous promotion programs for agricultural
commodities that have helped to educate consumers about the nutritional
benefits of different foods and have expanded markets for all commodity
producers. I believe it provides a good model for solar energy
technologies and will deliver additional applied research and
information designed to communicate with the general public to support
the entire solar industry.
My home State of Texas has moved aggressively to encourage the
development of renewable energy. We have abundant solar resources that
could be used to further expand our renewable energy portfolio. As
several of our witnesses will point out today, the U.S. has significant
solar potential that we are not yet taking full advantage of. We can no
longer afford to overlook obvious opportunities to diversify our energy
supply.
I commend my colleague for her work on this legislation and I look
forward to moving it forward in our committee very soon. We have an
excellent panel of witnesses today that will help us to refine this
legislation and expand our use of the abundant, clean source of energy.
[The prepared statement of Mr. Costello follows:]
Prepared Statement of Representative Jerry F. Costello
Good Morning. Thank you Mr. Chairman for holding today's hearing to
receive testimony on the discussion draft legislation sponsored by
Congresswoman Giffords. The bill establishes research, education, and
training programs to facilitate the adoption of solar energy
technologies.
My home State of Illinois has a plentiful supply of coal, which is
why our region specializes in clean coal research and demonstration
projects. In the West, solar energy and thermal energy storage is also
an environmentally friendly energy source. Regardless of where you live
in the country, I believe it is important to invest in multiple energy
sources to ensure the U.S. has diverse a energy portfolio.
Specifically, the Discussion Draft with regard to thermal energy
storage addresses an important issue related to solar energy and its
impact on utilities. Adding thermal storage to concentrated solar power
(CSP) plants enables solar energy to be a potentially provided at a low
cost, which is critical for our nation's economy. Further, the
discussion draft also addresses transmission integration, an important
issue for CSP plants.
Similar to clean coal technologies, cost is the greatest obstacle
with regard to producing solar power. I look forward to hearing from
our witnesses on how the solar research and information program for the
solar industry authorized in the bill would help to support research
and promote the adoption of solar power across the Nation. With that, I
again thank the Chairman for calling this hearing.
Ms. Giffords. At this time I would like to introduce our
fabulous, fabulous panel of witnesses with some Arizona
connections, I would also like to point out. I always bring it
back to Arizona. We have Mr. Hayden, who is Solar Technology
Coordinator for Arizona Public Service Corporation. Mr. Rhone
Resch is the President of the Solar Energy Industries
Association. Ms. Jane Weissman is the Executive Director of the
Interstate Renewable Energy Council and the Vice-Chair of the
North American Board of Certified Energy Practitioners. I just
have to mention that Ms. Weissman earlier has talked about 1991
at the Westford Look Hotel in Tucson where a lot of this work
actually began, so I think that is pretty interesting. We also
have Professor Joseph Sarubbi, who is the Chair of the Building
Systems Technology Department at Hudson Valley Community
College, and Mr. Daniel Arvizu, who is the Director of the
Department of Energy's National Renewable Energy Laboratory and
originally from Douglas, Arizona. So that is very cool.
So as our witnesses should know, spoken testimony, we would
like to try to limit to five minutes after which the Members of
the Committee will have five minutes to ask questions, and as
far as I know, we are okay on time in terms of votes, so no
particular pressure here to speed through this. But let us get
going with Mr. Hayden, please.
STATEMENT OF MR. HERBERT T. HAYDEN, SOLAR TECHNOLOGY
COORDINATOR, ARIZONA PUBLIC SERVICE COMPANY, PHOENIX, ARIZONA
Mr. Hayden. Madam Chairman and Members of the Committee, my
name is Herbert T. Hayden. I am the solar technology
coordinator for Arizona Public Service Company, APS, in
Arizona. Thank you for the opportunity to testify to you today
regarding concentrating solar power, or CSP. CSP is a
technology of great interest to APS for its potential to
provide lower cost and more-reliable solar power in the desert
Southwest.
I would like to submit my written comments to you and
briefly summarize them now on the main points, which are,
number one, the importance of thermal energy storage to the
viability of concentrating solar power; number two, the
importance of reduction of water use to the viability of
concentrating solar; and number three, how a study to integrate
concentrating solar power plants with the electric grid can
facilitate the commercialization and implementation of large-
scale CSP.
APS is the largest and longest serving electric power
utility in Arizona, the fastest growing state in the Nation. We
are adding customers at three times the national average and
electricity demand is growing at four times the national
average. To meet this rapid growth in electricity demand,
Arizona's electric utilities are investing over $2 billion a
year in infrastructure. Plans for the future include
conventional generation, new transmission and distribution, and
an increased focus on conservation and cost-effective renewable
energy resources.
In Arizona, our most abundant renewable resource is
sunshine. For the past 15 years, my responsibility has been to
work with the solar industry and researchers around the United
States and the world to bring lower cost and reliable solar
electricity to our customers. From a technology perspective,
our primary focus has been on technologies that can be lower
cost on a utility scale in the near-term. As early as 1995, the
APS STAR Center was a test site for dish Stirling systems and
for the advancement of concentrating PV systems, both of which
are forms of concentrating solar power. Based on inquiries from
companies around the world, it seems clear that our work has
helped stimulate the growing interest in concentrating solar
power technology.
One of the most successful CSP technologies to date are the
solar trough systems that use solar heat to drive turbine
engines and generators. For more than a decade, solar trough
plants in California have been the largest collection of solar
power in the world and they have operated well. CSP is
currently the most cost-effective solar technology for large-
scale use and has the potential to compete with conventional
generation in the near- to mid-term.
Because of this potential, last year APS completed the
first solar trough plant in the United States in over 14 years,
the one-megawatt APS Saguaro Solar Trough plant near Tucson,
Arizona. Our intent of that project was to help reestablish and
again advance the U.S. solar trough technology. In short order,
the APS plant was followed by a much larger project in Nevada
which has benefited from the new solar collector design
experience gained in the APS project.
An important attribute of the CSP systems is the ability to
incorporate thermal storage into the design to improve the
reliability of power output. This is an extremely important
feature that many intermittent renewable resources such as PV
and wind do not have. All renewables have value for the ability
to help reduce the use of fossil fuels but the ability to store
the thermal energy for times when it is needed provides for a
reliability that does not exist with intermittent resources.
This is especially critical to utilities because they have the
obligation to provide reliable power at all times. It is
commonly considered that solar provides power when it is needed
the most, during the daytime. This is largely true but there
are fluctuations due to clouds and a rolloff of solar before
the late day hours of high power consumption. For example,
power consumption in Arizona reaches a peak in the months of
July, August and September and the summer heat results in heavy
air conditioning loads. During that period, Arizonans use the
most energy between 5 and 7 p.m. when they go home, increase
the air conditioning and do things for their lives. But
unfortunately, the solar resource peaks sometime in the mid-
afternoon and tails off significantly as the sun lowers on the
horizon. Thermal storage has the potential to bridge the gap
between maximum solar generation and peak customer demand by
extending the hours of operation sufficiently to cover much of
the evening demand.
There has already been some support in the national labs
for the development of thermal storage concept and we recognize
and appreciate that past support. However, the resources are
apparently limited in comparison to the substantial expense of
a meaningful development and test plant. Certainly a dedicated
research and development program on thermal storage could
significantly accelerate the use of this promising technology.
Another key area for improvement of CSP is water use. The
current design of large CSP plants use water simply for cooling
a power plant in the same way that water is used for
conventional power plant cooling. Though CSP technology has
been successful with its current water cooling approaches,
growth in the desert has placed ever-increasing demands on
water use and reductions in water use would increase the
attractiveness of CSP.
On the third topic relating to CSP of the study of
integrating large CSP plants into the regional and national
electric grid, it is true that planning for CSP does raise
numerous issues including the availability of land, land-use
issues such as water and permitting, and increasingly, the
availability of transmission facilities and transmission
capacity to deliver the energy to load centers from the areas
where solar might be developed. Transmission is generally
constrained in much of the West and significant new
transmission investment is needed in the coming years for all
types of generation, renewable or conventional. The
Southwestern states and utilities, including APS, are
considering the needs and benefits for transmission to ensure a
robust grid to meet the needs of the West's rapidly growing
population. A federal study of the potential for the
integration of CSP into the transmission plans would be timely
and supportive of the further commercial implementation of CSP
and could help address the same kind of issues that have been
encountered in the successful growth of the wind industry.
So finally, we are currently leading a group of
southwestern utilities in the exploration of a 250-megawatt CSP
plant to be built in the Southwest. In the process, we have run
into these issues--transmission, water, et cetera. Also, land
on federal land could be considered.
So finally, I would just say that we believe, APS believes
that large-scale CSP has very good potential to provide cost-
effective energy to the United States. We also believe that the
U.S. industries have still been a leader in concentrating
technologies and have the opportunity to benefit by that, and
finally that CSP can be improved with the additional of thermal
storage and with reduction of water use and the proper
integration of CSP in the national grid.
Thank you, Madam Chairman and the Members of the Committee
for the opportunity to share these observations with you, and I
would be available to answer questions if I can. Thank you.
[The prepared statement of Mr. Hayden follows:]
Prepared Statement of Herbert T. Hayden
Mr. Chairman, Members of the Committee, it is a pleasure to provide
testimony to you regarding 1) the importance of thermal energy storage
technology to the viability of concentrating solar power, and 2) how a
study to integrate concentrating solar power plants with the electric
grid can facilitate the commercialization and implementation of large-
scale CSP.
Arizona Public Service Company (APS) is the largest and longest
serving electric power utility in Arizona. Arizona is also the fastest
growing state in the United States. APS is adding customers at three
times the national average and our customers' electricity demand is
growing at four times the national average. To meet this rapid growth
in electricity demand Arizona's electric utilities are investing over
$2 billion a year in infrastructure. Plans for the future include
conventional generation, new transmission and distribution and an
increased focus on conservation and cost effective renewable energy
resources.
In Arizona our most abundant renewable resource is sunshine. And,
for the past 15 years, my responsibility has been to work with the
solar industry and researchers around the U.S. and the world to bring
lower cost and reliable solar electricity to our customers.
APS' first work in the solar technology area was .in 1954 when APS
helped organize the first International Solar Energy Exposition in
Phoenix, AZ that lead to the formation of the International Solar
Energy Society. In the 1970's, APS applied early solar PV technology in
remote off-grid telecommunications applications, and since the early
1980's APS has been an active participant in the study and development
of solar energy for large scale utility use.
In 1988, the APS Solar Technology Applied Research (STAR) center
was developed to support the advancement of solar resources, including
field operation of both photovoltaic (PV) and concentrating solar
technologies. Our early work at STAR gave APS the expertise and
experience to undertake several noteworthy projects including Arizona's
first customer-sited PV systems tied to the grid, and Arizona's first
utility scale grid-tied solar PV system. APS is proud to provide solar
services to the National Park Service and several military bases in
Arizona to assist with the use of PV in support of remote off-grid
operations. And, we currently have over five MW of PV tracker power
plants in operation providing reliable solar energy to our customers.
From a technology development perspective our primary focus has
been on large scale solar technologies. As early as 1995, APS STAR
center was a test site for the dish Stirling systems, and the
advancement of Concentrating PV (CPV) systems. We have more then 10
years experience operating silicon CPV, and three years ago installed
the Nation's first grid-tied triple-junction high concentration PV
system. Based upon inquiries from companies around the world it seems
clear that our CPV work has helped stimulate new interest in CPV
technology. And while there is significant CPV work now being
undertaken in other countries, it is my belief that the United States
remains in the technological lead of this very promising solar
technology.
In another very promising technology area, APS has supported the
advancement of concentrating solar power (CSP). These technologies are
``thermal electric systems'' that use solar heat to drive engines and
generators. CSP thermal systems include solar trough concentrator
systems and central receiver (power tower) systems that use many
mirrors to focus light on a central solar collector. CSP also include
solar dish Stirling systems and other advanced solar concepts.
The solar trough systems are worth particular note. For more then a
decade solar trough systems in California have been the largest
collection of solar power in the world, and they have operated well.
CSP is also currently the most cost effective solar technology and has
the greatest potential to compete economically with conventional
generation in the near to mid-term.
Because of this potential, just last year, APS constructed the
first solar trough plant in the U.S. in over 14 years. Our intent was
to help to re-establish and again advance the U.S. solar trough
technology. The plant is the one MW APS Saguaro Solar Trough plant,
near Tucson, Arizona.
While not part of the Saguaro design, an important attribute of the
solar thermal CSP systems is the ability to incorporate thermal storage
techniques into the design to improve the reliability of power output.
This is an extremely important feature that many intermittent renewable
resources such as PV and wind do not have. While all renewables have
value for their ability to help reduce the use of fossil fuels, the
ability to store the thermal energy for times when its needed provides
a level of reliability that does not exist with intermittent resources.
This is especially critical to utilities that have an obligation to
provide reliable power at all times.
Common wisdom is that solar technologies produce power when it is
needed the most, during the daytime. While this is largely true, there
are exceptions that are not obvious such as fluctuations due to clouds
and a mismatch to late-day power consumption. This latter exception is
the norm for Arizona and most of the desert southwest. In the
southwest, power consumption reaches its peak in the months of July,
August and September, when the summer heat result in heavy air
conditioning loads. The correlation between power consumption and high
summer temperatures are a good match for CSP however the correlation is
not as perfect as one might expect. In a 24 hour period, Arizonan's use
the most energy in the early evening, between 5 and 7 p.m., when they
return home from work, turn down the air conditioning, cook dinner, do
laundry and generally go about their lives. Unfortunately, solar
electricity production, even from CSP, does not match this hourly
demand profile very well. Solar electricity production reaches its peak
levels sometime in the mid-afternoon and tails off significantly in the
early evening as the sun lowers on the horizon. Thermal storage has the
potential to bridge the gap between maximum generation and peak demand.
Without the availability of solar energy during the peak, utilities
must look to other reliable resources like natural gas to meet customer
demand. But, thermal storage has the real potential to change utility
resource decisions because with storage CSP systems will be able to
reliably serve customers when electricity costs are the highest.
There currently exists some support in the national labs for the
development of the thermal storage concept, which we recognize and
appreciate. However the resources are apparently limited in comparison
to the substantial expense of a meaningful development and test plant.
Certainly a dedicated research and development program on thermal
storage could significantly accelerate the use of this promising
technology.
The second topic of discussion relating to CSP is the integration
of large CSP plants into the regional and national electric grid. This
topic raises numerous issues including availability of land for large
scale installation, land-use issues such as water use and permitting
and the availability of transmission facilities and transmission
capacity to deliver the energy to load centers. The cost, timing and
risks associated with each of these factors must also be considered.
One additional aspect of large scale CSP that must be considered is
the status of financial incentives. Currently, the 30 percent
Investment Tax Credit (ITC) for solar has resulted in projected project
costs that are significantly more competitive than any time in the
past. But without a long-term extension of the ITC, many large scale
CSP projects will never be launch due to the time it takes to address
the issues noted in the preceding paragraph. Large scale CSP plants
require three to five years from commitment to start up Today, the ITC
is set to expire at the end of 2008. The one to two year ITC extensions
that have been typical in previous years, will not provide sufficient
certainty to enable major CSP development. Long-term extension of the
ITC is critical to CSP development.
One critical aspect of the ITC is the fact that it is not available
to public utilities. The restriction needlessly narrows application of
the credit and is unfair to U.S. citizens because the vast majority
purchase power from a public utility, as it is defined by the tax code.
Therefore, a utility wishing to plan a large CSP resource would need to
assume no ITC, or secure a third-party owner of the plant. This current
policy forcing a third-party relationship to take advantage of the ITC
creates unnecessary uncertainty and costs to the system. It forces the
utility and regional grid to consider the operational and financial
risks inherent in any third party relationship thus affecting the
utility operating strategies. These risks can certainly be analyzed and
managed but create a potential sub-optimum situation when they are the
only strategy available.
While there are numerous issues to be addressed, APS is bullish
about CSP and is leading a group of southwestern utilities exploring a
250 MW CSP plant in the desert southwest. We have found several
constraints to a successful project including the financial factors
associated with the end of the ITC in 2008, and the lack of
transmission capacity. In fact, transmission is generally constrained
in much of the west and significant new transmission investment is
needed in the coming years for all types of generation be they
renewable or conventional generation. New transmission is being planned
throughout the west and in California and Texas specifically to access
renewable resources including wind and geothermal. Others states and
utilities, including APS, are studying their needs for both intra and
interstate transmission to ensure a robust grid to meet the needs of
the West's burgeoning population. The studies include the ability to
reach those areas of the west with abundant low cost renewable
resources.
Answers to the questions about CSP, and indeed renewables in
general, are not simple. Intermittent renewable resources such as wind
and solar present special economic challenges for transmission
investment because they do not efficiently utilize the transmission
investment at all times. Wind integration studies have and are being
performed. We believe CSP has a significant potential to provide large
amounts of renewable energy to the U.S. and that a federal study on
transmission for large scale CSP would be beneficial and appropriate.
Finally the issue of locating large scale CSP on federal land
should be investigated and analyzed. By its nature, solar technologies
require significant geographic footprints. A general rule of thumb for
a solar installation is five to 10 acres per megawatt. That means for a
single 250 megawatt facility, 1,250 to 2,500 contiguous acres of land
would be required. Considering that the Federal Government is the
largest land owner in the U.S., a study of federal land in high solar
resource areas that may be made available for CSP development would
also be beneficial and appropriate.
In summary, APS is proud of its contributions to the advancement of
solar technologies including CSP, but more needs to be done. APS
believes that large scale CSP has the best potential to provide cost
effective solar energy to the U.S. and this potential improves
dramatically with the addition of thermal storage. Understanding how
these large CSP installations will impact the regional and national
grid must be understood. We support federal funding for a CSP
integration study. We encourage additional federal attention and
support for CSP and welcome the opportunity to continue to work with
the U.S. national labs and the solar industry on the further
advancement of solar resources into our national energy portfolio.
Thank you Mr. Chairman and the Members of the Committee for the
opportunity to share these observations and opinions with you.
Biography for Herbert T. Hayden
Since 1993, Herb Hayden has led the development, construction and
operation of solar power plants for APS, the largest and longest-
serving electric utility in Arizona. Over six Megawatts (MW) of solar
generation has been installed to date by APS, including photovoltaic
(PV) and advanced concentrator solar power systems (CSP). These CSP
systems include Concentrating PV (CPV) and one MW of Concentrating
Solar Trough thermal generating systems.
Herb has managed the development of new solar technologies that
have placed APS in a leadership role for solar systems of particular
promise for utility use. These include larger-scale PV tracking systems
using present-day commercial PV panels, and the high concentration PV
(CPV) and dish-engine systems that are emerging to address the price
and supply limitations of conventional PV products. Much of this work
is visible at the APS Solar Test And Research (STAR) center, where new
solar technologies are under test in the Arizona environment.
In addition to grid-connected solar, Herb initiated the development
of the APS Remote Solar Electric Service. This program provided off-
grid solar power services to 50 homes and ranches in Arizona, as well
as several unique larger scale ``solar hybrid'' systems for military,
national park and commercial customers in the U.S. southwest and
Mexico.
Herb is a PE in Arizona, having received his BSEE with honors from
Arizona State University in 1983. Prior to his solar work at APS, Herb
performed project management and engineering for APS telecommunications
systems, and worked four years at Motorola in the development of
advanced electronic systems.
Solar technology participation areas:
Over six MW of solar generation currently installed
and operating
Development and operation of 500 kW of CPV, in
collaboration with Amonix Inc.
Formation of Concentrating Technologies LLC,
developing an advanced new triple-junction CPV product in
collaboration with Spectrolab
First Dish Stirling utility installation in Arizona,
in collaboration with SAIC and Stirling Thermal Motors, plus
studies of advanced Dish Turbine concepts
Demonstration of the solar generation of hydrogen
using Dish Stirling, and the reversible use of hydrogen to
generate electricity using the Stirling engine
Development of the APS large two-axis tracker system
for high concentrating solar (320 m2 per unit tracking area)
Development of APS Single-Axis horizontal tracker PV
system
Development of APS Single-Axis Tilted Tracker PV
system
The first use, and APS development role in Shingleton
single-axis tracker, which later was purchased by Powerlight
and sold as their Powertracker
Formation of FWR LLC, manufacturer of solar tracking
control electronics, and data acquisition equipment
Development of APS Remote Solar Electric Service,
providing and maintaining small hybrid PV systems for service
to remote homes, ranches and larger scale uses
Working relationships with NREL, Sandia National
Labs, Arizona State University, University of Nevada Las Vegas,
Weizmann Institute of Science Solar Institute
Served as member of DOE Concentrating Solar Power
Peer Review Commission, 2002
Several patents, and several papers on high
concentration PV and solar tracking systems, numerous
international presentations
Patents:
Four patents awarded for solar tracking systems and
controls
Four additional patent applications in process
Ms. Giffords. Thank you, Mr. Hayden.
Mr. Resch, please.
STATEMENT OF MR. RHONE RESCH, PRESIDENT, SOLAR ENERGY
INDUSTRIES ASSOCIATION
Mr. Resch. Thank you, Chairman Lampson, Congresswoman
Giffords and the Members of the Subcommittee for providing me
the opportunity to testify on these important issues this
morning.
My name is Rhone Resch. I am President of the Solar Energy
Industries Association, a trade group here in Washington that
represents over 500 companies and over 20,000 people employed
in the U.S. solar energy industry including hundreds of small
businesses throughout the United States.
I would like to thank the Committee and its staff for
providing true leadership in advancing solar energy in the
United States. A key element of leadership is providing the
opportunity to empower others to lead and today you seek to
empower individual Americans to strengthen our energy
independence, to become high-tech workers, adopters and
advocates for solar technologies that can help meet America's
energy challenges in the 21st century.
With regard to the establishment of a check-off program for
solar, I would like to convey three points. First, the high
priority--the highest priority for the solar energy industry is
the creation of a long-term incentive for solar to help lower
costs and provide a clear market signal to manufacturers to
actually expand production. Only then will we have a supply to
meet the demand of an educated market and only then will a
check-off program succeed. Second, solar energy technologies
provide significant energy security, environmental, and
economic benefits to the American public and must be a
significant part of our energy portfolio going forward. And
third, the solar industry would greatly benefit from the
creation of a federal check-off program just as dozens of other
U.S. industries have benefited from these programs.
While solar prices have dropped by 90 percent in the last
25 years, solar is still two to three times as expensive as the
national retail electricity rates. Furthermore, the United
States has been eclipsed by Germany, Japan and China in the
manufacturing and use of solar. Incredibly, Germany installs
eight times the amount of solar each year as the United States
despite having the same amount of sunlight as Anchorage,
Alaska, as you can see from this map here. When you do look at
that map, you can see that the United States really does have
world-class solar resources in all 50 states. Certainly if you
can make solar work well in Germany, you can make it work well
in all 50 states in the United States. But Germany enjoys
market leadership because its government has enacted long-term
incentive policies that have jump-started the installation
market. Congress is currently considering legislation to extend
the federal solar investment tax credits for homeowners and
businesses, H.R. 550, the Securing America's Energy
Independence Act. Specifically, these bills will create an
eight-year extension in expansion of the ITC for commercial
systems and an eight-year extension in expansion for the
residential systems. I want to commend Chairman Gordon,
Subcommittee Ranking Member Inglis, Congresswoman Giffords,
Congressman Udall, Congressman Baird, Congressman Bartlett,
Congressman McCaul for co-sponsoring this important legislation
without which a check-off program would not galvanize in the
United States. We need to have this policy support in place to
make the domestic industry competitive in the global
marketplace for solar technologies, and I respectfully request
that the Committee reach out to Chairman Rangel of the Ways and
Means Committee and ask him to support the provisions in H.R.
550 and the tax title of the energy bill which will be marked
up tomorrow.
Solar energy is the Nation's most abundant energy resource
and it can greatly improve the U.S.'s ability to have a secure
and reliable energy supply. Solar requires no field to operate
and our panels are warrantied to last for 20 to 25 years, and
you will see a panel being put up here in just a minute, and
this is one of the things to point out. Once you install--once
you buy and install a solar system on your house, it is like
buying a car with all the gas you will need for it for its
entire lifetime. Sure, it has most of a cost upfront but it
will hedge the consumer against rising energy prices in the
future. And on a community scale, solar can help stabilize
volatile electricity prices and relieve tight markets for
natural gas by reducing demand during midday peak when the most
expensive, least efficient generation is used.
Moreover, solar is the cleanest method of electricity
generation. Electricity for solar produces no air pollution, no
water pollution, no noise pollution, no radiation, no solid
waste, has no impact on wildlife, except maybe inconveniencing
the squirrels that are running around on your roof, and uses no
water for generating electricity, an increasingly important
issue for the fast-growing communities of Arizona, Nevada, New
Mexico, California and Colorado, as Herb just pointed out.
As we begin to tackle climate change in a real manner, keep
in mind that over the 40- to 50-year life of a solar electric
system, every kilowatt of solar electric power reduces 217,000
pounds of CO2.
Finally, as today's hearing demonstrates, there are
tremendous economic benefits to be gained form increasing our
use of solar energy. Solar photovoltaic creates 32 jobs per
megawatt, more than any other form of energy. Solar could
provide more than tens of thousands of new jobs in the coming
decade in manufacturing, engineering, construction and
installation, investing America's energy dollars in America's
workers.
If we are to begin harnessing this potential, we must
significantly increase consumer education and awareness of
solar technologies. While the public strongly supports the
increased use of solar, market research shows a broad gap in
the understanding that solar electricity operates just like
regular electricity and that solar can work anywhere in the
United States. Many outdated misconceptions exist that the
technology must be overcome in order for consumers' use to
increase of solar. As you can see, this is a solar electric
panel. Most people still think that solar looks like the
technology on Skylab, checkerboard pattern, inefficient use.
This is made by a company in the United States. It looks like a
flat-screen TV. It is the most efficient panel made in the
world, 22 percent efficient, absolutely gorgeous. I actually
put it up on my house last year. It generates about 85 percent
of my electricity right here in Washington, D.C. It is very
exciting. But consumers lack the information on how to find
solar companies and what solar products might be available, and
most solar installation companies are small businesses,
typically employing no more than a few dozen people and lacking
the budget to reduce a broad swath of consumers.
So in short, the solar industry needs to launch a national
awareness campaign and numerous other industries have provided
us with a blueprint to do so. Congressionally created check-off
programs have served as the backbone of many industries'
successful promotion campaigns. Mr. Chairman, I am sure we are
all familiar with the dairy industry's ``Got Milk,'' the cotton
industry's ``Cotton, The Fabric Of Our Lives'' and the National
Pork Board's ``Pork, The Other White Meat.'' But Mr. Chairman,
no pork was involved in the creation of these campaigns, at
least no Congressional pork. Rather, these industries pooled
their resources through a comprehensive program to fund
consumer education. A ``Got Solar'' program, if you will, would
provide major benefits to the American public. Consumers would
be able to obtain market information on product and company
quality and become educated about local and national energy use
patterns. Meanwhile, local solar installers would benefit from
broad public outreach that they would otherwise be unable to
afford and see the resultant growth in their business.
To be clear, consumer awareness is only one major obstacle
to the widespread use of solar and a check-off program can only
work if we have proper market incentives and market mechanisms
in place.
I want to thank the Committee for giving me the opportunity
to speak, and I am available to answer any questions that you
may have.
[The prepared statement of Mr. Resch follows:]
Prepared Statement of Rhone Resch
Thank you, Mr. Chairman and Members of the Subcommittee, for
providing me the opportunity to testify today.
On behalf of over 500 companies and more than 20,000 employees in
the U.S. solar energy industry, I would like to express support for the
Solar Energy Research and Advancement Act of 2007, legislation that
would help solar energy to make major strides in contributing to a
clean, domestic, renewable supply of electricity that is of, by, and
for the American people. SEIA applauds Congresswoman Gabrielle Giffords
for her visionary leadership in introducing this bill.
My comments today will focus on the importance of a solar check-off
program, or ``Got Solar,'' to the future utilization of solar energy
resources in the U.S. Aside from cost, the greatest obstacle to solar
reaching a wider domestic market is education and public awareness.
With respect to a ``Got Solar'' program, I would like to convey the
following points:
Greater use of carbon-smart, domestic solar energy
would have myriad energy security, economic, and environmental
benefits for the American public.
While the public broadly supports the greater use of
solar energy, most Americans do not have a basic understanding
of solar technology products or how to purchase them.
Educating the public on solar energy is primarily the
responsibility of the solar industry, but most solar installers
are small businesses that lack the means to reach a broader
swathe of consumers.
Building on dozens of U.S. industries' successful
examples, Congress should establish a coordinated program of
promotion and research, funded by industry at no cost to the
government, to increase consumer education about solar energy.
Finally, a check-off program will only succeed if
appropriate incentives are in place, including an eight-year
extension of the federal investment tax credits (ITC).
Public Benefits of Solar Energy
The U.S. solar energy industry is growing and providing more
carbon-smart, domestic energy every year. Solar energy technologies can
provide major energy security, environmental, and economic benefits to
the American public, all of which will be realized with broader
consumer awareness and adoption of solar.
Energy Security
As Congress looks to increase the use of carbon-smart renewable
energy, it is critical that priority be placed on technologies that
also improve U.S. energy security. Solar energy, in all of its forms,
is a technology that can greatly improve the U.S.'s ability to have a
secure and reliable energy supply.
The electricity infrastructure in the U.S. is aging and energy
consumers are increasingly subject to outages that affect critical
infrastructure and disrupt business. The blackout of August 2003 in the
Northeast, triggered by a tree limb landing on power lines, cost
consumers and businesses tens of billions of dollars. Unfortunately,
this event is not unique and will occur with greater frequency if
Congress does not take steps to diversify our energy portfolio.
The good news is that this event could easily have been avoided
through greater use of solar energy. A 2004 Department of Energy (DOE)
study entitled Solution to the Summer Blackouts? concludes that if
solar energy had met just one percent of local peak demand, we would
have avoided the August 2003 blackout and other local brown-outs. DOE's
explanation was simple: high air conditioning loads stressed the grid
and created the circumstances for the blackout. This extreme load
occurred on one of the hottest and sunniest days during the summer--the
exact time when output from solar systems is greatest. DOE also
concluded that over reliance on central generating stations led to grid
fatigue and failure. This infrastructure vulnerability could have been
minimized through greater reliance on distributed solar energy.
Photovoltaic (PV) and solar water heating systems are distributed
generation (DG) technologies. Like other DG technologies, they provide
energy at the point of consumption rather than at a central power plant
hundreds of miles away. As such, DG does not rely on vulnerable
regional transmission lines and local distribution networks. By
producing energy at the source of consumption, solar power alleviates
stress and vulnerability on the grid.
The DOE study also concluded that investing in solar energy is a
more economically efficient and cost effective way to improve our
energy infrastructure than capital intensive and often community-
opposed transmission line upgrades and brand-new transmission lines. In
sum, using solar energy is a cost-effective, affordable way to
alleviate stress on the electricity grid and improve the overall
reliability of our electricity infrastructure.
Solar is also the most reliable source of energy. This reliable
track record has resulted in wide deployment of the technology in
applications where power interruptions are unacceptable, including: oil
and gas industry use of solar energy to power pumps and meters at
remote locations; telecommunications industry use of solar to power
relay stations and remote equipment; and, every satellite that has been
sent out into space in the last 30 years has been powered by solar
energy.
Ironically, energy industry acceptance of the technology stands in
stark contrast to consumer behavior. Consumers are investing hundreds
of millions of dollars in small gasoline-powered generators. During
grid failure and electricity outages, electronic gasoline pumps at the
gas stations do not operate, rendering many generators idle because of
fuel shortage. Solar energy is a technology that can provide reliable
power during power outages.
Finally, solar stabilizes volatile energy prices, a critical energy
security issue affecting the U.S. today. In the last five years,
consumers have seen electricity prices escalate between 20 and 78
percent. At the same time, we have seen the price of natural gas triple
and the price of gasoline routinely exceed $3.00 per gallon. Each year
the cost of energy is taking a larger percentage of a family's income
than at any other time in U.S. history. This energy inflation
vulnerability especially impacts the poor and elderly on fixed incomes.
Solar can help address this vulnerability because it requires no
fuel to operate. Although a solar system is more expensive up front,
there are no additional costs for operating a system once installed.
Furthermore, solar panels are guaranteed for 20-25 years, allowing
consumers to ``lock in'' their electricity prices for decades.
Recognizing the upward trend in energy costs, incentivizing the use of
a technology that requires no fuel inputs is an important element of
any energy security plan.
Energy Independence
Solar energy is a domestic and abundant energy source in the U.S.
The U.S. has the best solar resources of any developed country in the
world. Proportionally, U.S. solar energy resources exceed those of
fossil, nuclear or other renewable energy resources. Despite this
tremendous advantage, the U.S. has failed to capture and harness this
free and readily available energy. In 2006, solar energy produced just
1/30th of one percent of all electricity in the U.S.; Germany in
contrast, with the solar resources of Alaska, installed seven times
more solar energy property than the entire U.S.\1\
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\1\ Energy Information Administration, Net Generation by Energy
Source by Type of Producer, October 2006.
The U.S. is over-dependent on foreign sources of energy. Demand for
natural gas continues to rise, primarily for electricity generation.
Increasingly we are turning to countries like Algeria to provide us
with liquefied natural gas (LNG) to meet our growing demand. According
to the Federal Energy Regulatory Commission, 41 new LNG terminals are
proposed for construction in U.S. harbors and off U.S. beaches.
Constructing these plants will exacerbate our addiction to foreign
sources of energy. Our desire for energy independence demands a
different course.
Solar energy directly displaces natural gas used for heating homes
and water. In a home, solar can directly replace natural gas used to
heat radiant systems and can displace up to 70 percent of the natural
gas used to generate hot water. Many countries that do not have a
domestic source of fossil fuels, including Spain and Israel, mandate
that all new homes must have solar water heating systems installed. The
U.S. can demonstrate similar energy independence by using market
incentives that spur solar investment and market growth.
Solar energy also displaces natural gas used to generate
electricity. Almost all intermediate and peaking electricity plants use
natural gas as the source of energy. These plants are often very
inefficient and produce expensive electricity. Solar energy, which
generates electricity from 8 A.M.-7 P.M. daily, can displace these
inefficient, high cost power plants, and become a reliable source of
firm, dispatchable power. Given the high price of natural gas to key
industrial sectors and consumers, the U.S. can no longer afford to
neglect its abundant solar resources.
In addition to tempering natural gas demand growth, solar can also
generate electricity to be used by plug-in hybrids and electric
vehicles, thereby displacing gasoline derived from foreign oil
supplies. Imagine a gasoline-free electric vehicle that also uses
electricity derived from the sun rather than a coal-fired plant. The
technology is advancing rapidly in this direction.
Environmental Benefits
Though the environmental benefits of solar energy might be
considered a given, it is worth highlighting several points. Solar is
the cleanest method of energy generation, in terms of avoided air,
waste and noise pollution, energy payback, water conservation, avoided
radiation and harm to wildlife, or environmental risk in the event of
an accident.
Solar energy produces no greenhouse gases, no acid precipitation or
toxic emissions, and no other air pollution of any kind. Over the 40-50
year life of a solar electric system, every kilowatt (kW) of solar
electric power reduces 217,000 pounds of carbon dioxide, 1500 pounds of
sulfur dioxide, and 830 pounds of nitrogen oxides emissions as compared
to electricity produced by conventional generation.\2\
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\2\ NREL report, ``Distributed Energy Resources for the California
Local Government Commission,'' October 2000.
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Photovoltaic solar energy generates electricity without use any
water. In contrast, fossil fuel and nuclear based electricity
generation use substantial amounts of water to run steam turbines.
Across the western United States, approximately 40 percent of fresh
water withdrawals are used for electric generation.\3\ If water-starved
communities like Phoenix and Las Vegas are to continue growing, we must
place greater emphasis on water-free electricity generating
technologies.
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\3\ Sandia National Laboratories, Energy-Water Nexus, http://
www.sandia.gov/news-center/news-releases/2006/environ-waste-mgmt/
mapwest.html
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Concerns have been raised whether the energy used to produce solar
panels is surpassed by the amount of energy generated from the panels.
This energy relationship is referred to as the ``energy payback
period.'' Currently, the energy payback for PV panels varies from 1-4
years depending on different manufacturing variables. This means that a
PV panel with a life expectancy of 40-50 years will generate between 10
and 50 times more energy than was required to create the panel. Despite
this superior ``energy return on investment,'' the manufacturing
process is still growing more efficient every year as the scale of
production increases.\4\
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\4\ NREL Report No. NREL/FS-520-24619: ``Energy Payback: Clean
Energy from PV''
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Strong Public Support Exists for Greater Solar Development
Polls consistently reflect that the American public strongly
supports the accelerated use of solar technologies. For example, a 2005
poll by the Yale Center of Environmental Law and Policy 2005 found that
90 percent of Americans support building more solar power facilities to
help reduce U.S. dependence on energy imports. A Roper Public Affairs
poll conducted in May 2007 found that nearly 90 percent of Americans
believe home builders should offer solar power as an option for all new
homes constructed. And 73 percent of those surveyed in another Roper
survey in 2006 said that solar energy technology is more important
today than ever in responding to America's energy challenges.
In general, Americans would like to see the Federal Government take
a more active role in promoting solar development. A February 2006 poll
by the Pew Research Center found that 82 percent of respondents favored
increasing federal funding for research on wind, solar and hydrogen
technology. A March 2006 ABC News/Time/Stanford University poll found
that 87 percent favored tax breaks for companies to produce more
electricity from water, wind and solar. Note that these policies would
require the use of taxpayer funds, unlike a check-off program.
Finally, polling surveys demonstrate that Americans are willing to
pay more for solar technologies under certain conditions. An April 2007
study by the New York Times and CBS News found that 75 percent of
Americans were willing to pay more for solar electricity if it helped
reduce global warming. Meanwhile, one-half of respondents in the May
2007 Roper survey said they would spend up to 10 percent more for a
solar-equipped house when told that solar homes have a proven higher
resale value. A majority of respondents cited the financial and energy
savings of a solar system as the main benefit of buying a solar system,
indicating that consumers are assessing solar for its potential savings
benefits and would support a program that drives down the cost of
solar.
Need for Improved Consumer Education About Solar
However, while 87 percent of respondents to the New York Times/CBS
News poll supported the use of solar to generate electricity, just
three percent of respondents said that they used solar to generate
heat, hot water, or electricity. That is actually a far higher solar
use percentage than amongst the American public at large, but it
nevertheless illustrates the gap between broad public support for solar
and its de minimis use today.
Though growing exponentially and constantly innovating, the U.S.
solar industry is still in a nascent period. As mentioned above, solar
PV provides less than 1/30th of one percent of the current U.S.
electricity supply. Furthermore, PV is primarily a distributed
generation technology that is installed on the rooftops of homes and
businesses throughout the U.S.--a paradigm shift from the traditional
model of centralized electricity generation. Most solar installation
companies are small businesses, typically employing no more than a few
dozen people, and lacking the budget to reach a broad swathe of
consumers.
Thus, even as consumers embrace the idea of solar power, they are
usually not fully aware of its capabilities and they have
misconceptions about how a solar energy system works in a home. Market
reports demonstrate a lack of consumer understanding that solar
electricity operates just like regular electricity and is the same kind
of electricity that a local utility company provides. 29 percent of
respondents to the May 2007 Roper survey were not aware that solar
energy can power common electric devices like computers or appliances.
A number of common myths persist about modern solar technology, such as
the belief that solar will not work in places outside of the Sunbelt or
that solar devices require more energy to manufacture than they produce
in their lifetime, and these myths often inhibit consumer consideration
of solar as a viable energy source.
Furthermore, consumers lack information on how to find solar
companies or what solar products might be available. On a daily basis,
the most common phone calls to SEIA come from consumers who ask,
``Where can I find solar for my home?'' The industry has taken a number
of steps to centralize this type of information, including the
development of a national solar installer directory, Findsolar.com.
Individually, several companies have undertaken consumer awareness
campaigns that focus on basic technology education. Yet these efforts
clearly do not equate to the potential reach of a national consumer
awareness campaign.
Benefits of a Solar Check-Off Program
A ``Got Solar'' program, based on a successful model used by other
industries, would address the above concerns by creating an industry-
funded national education campaign on the benefits of solar energy.
Collectively, the industry would pool its resources through an
industry-wide program to fund this educational effort.
SEIA anticipates major benefits both to the consumer and to the
industry with the creation of a check-off program. Consumers would
increasingly have the information they need to ``go solar.'' As the
availability of market information increases, consumers would be better
able to conduct due diligence on product and firm quality before
purchasing a system. Educated consumers could convince their
businesses, local utilities, and public representatives to adopt solar
energy and promote its use. And the program would also help to drive
down the costs of solar to the consumer over time, creating a market
demand signal that would help companies to rapidly increase production
for the U.S. market and achieve economies of scale.
The solar industry would also reap the benefits of increased
consumer education and focused demand, which would translate into
industry growth. A vibrant and well-functioning market system would
greatly help to make the domestic industry competitive in the global
marketplace for solar energy technologies. The benefits of increased
awareness of solar would accrue to a wide group of small-to mid-sized
industry players (installers, local integrators, equipment suppliers),
many of whom would not be able to afford this type of broad public
outreach and education.
Successful Precedents for a Solar Check-Off Program
The ``Got Solar'' program is based on a very successful model used
in other industries to increase consumer awareness of their product.
Check-off programs have helped fund the dairy industry's ``Got Milk''
campaign, the American Egg Board's ``Incredible Edible Egg,'' the
America's Cotton Producers and Importers' ``Cotton, the Fabric of Our
Lives,'' and the National Pork Board's ``Pork, the Other White Meat.''
In each case, a piece of legislation similar to the ``Got Solar''
program created a board that collects a small assessment from each of
the industry's members.\5\ The funds are then directed toward education
and public awareness campaigns.
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\5\ Examples of statutes establishing check-off programs include:
National Oilheat Research Alliance Act, 42 U.S.C. 6201; Commodity
Promotion, Research, and Information Act, 7 U.S.C. 7401; 7411-7425;
Cotton Research and Promotion Act, 7 U.S.C. 2102-2118; Potato
Research and Consumer Information Act, 7 U.S.C. 2611-2627; Egg
Research and Consumer Information Act, 7 U.S.C. 2701-2718; Beef
Research and Information Act, 7 U.S.C. 2901-2911; Wheat and Wheat
Foods Research and Nutrition Education Act, 7 U.S.C. 3401-3417;
Floral Research and Consumer Information Act, 7 U.S.C. 4301-4319;
Dairy Production Stabilization Act, 7 U.S.C. 4501-4538; Honey
Research, Promotion, and Consumer Information Act, 7 U.S.C. 4601-
4613; Pork Promotion, Research, and Consumer Information Act, 7 U.S.C.
4801-4819; Watermelon Research and Promotion Act, 7 U.S.C. 4901-
4916; Pecan Promotion and Research Act, 7 U.S.C. 6001-6013; Mushroom
Promotion, Research, and Consumer Information Act, 7 U.S.C. 6101-
6112; Lime Research, Promotion, and Consumer Information Act, 7 U.S.C.
6201-6212; Soybean Promotion, Research, and Consumer Information
Act, 7 U.S.C. 6301-6311; Fluid Milk Promotion Act, 7 U.S.C. 6401-
6417; Fresh Cut Flowers and Fresh Cut Greens Promotion and Information
Act, 7 U.S.C. 6801-6814; Sheep Promotion, Research, and Information
Act, 7 U.S.C. 7101-7111; Canola and Rapeseed Research, Promotion,
and Consumer Information Act, 7 U.S.C. 7441-7452; National Kiwifruit
Research, Promotion, and Consumer Information Act, 7 U.S.C. 7461-
7473; Popcorn Promotion, Research, and Consumer Information Act, 7
U.S.C. 7481-7491; Hass Avocado Promotion, Research, and Information
Act, 7 U.S.C. 7801-7813.
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Two examples of well-functioning check-off programs can be found in
the oil heating and beef industries. The oil heating industry pushed
for passage of the National Oilheat Research Alliance (NORA) Act of
2000, which assesses a charge of $.002 per gallon produced on members
of the oil heating industry. The program has allowed an otherwise
fragmented industry to pool its resources for advertising and also for
crucial research and development. NORA uses the funds to help
development new oil heating technologies, bringing better products with
higher efficiencies to the public.
In another well-known example, the Beef Promotion and Research Act
of 1985 charges cattle producers and importers $1 per head of cattle,
with the assessments overseen by the Beef Board and going to fund the
National Cattlemen's Beef Association. The program brings in millions
of dollars per year to fund public education and advertising campaigns,
including the popular ``Beef, It's What's for Dinner'' campaign. This
check-off program has been the backbone of the modern beef industry in
the United States.
The beef industry's check-off program has undergone close economic
analysis since it was established. The most recent report, by Dr. Ron
Ward of the University of Florida, studying the check-off program from
2000-2004, showed the program to be an exceptionally good method of
growing an industry's market. The study found that for every dollar
invested in the check-off program, there was an industry return of
$5.\6\
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\6\ Dr. Ronald W. Ward, ``Beef Demand and the Rate-of-Return to the
U.S. Beef Checkoff,'' September 2004, http://www.beefboard.org/uDocs/
wardstudy-2004.pdf; Agricultural Marketing Service of the Department of
Agriculture, http://www.ams.usda.gov/lsg/mpb/beef/beefchk.htm
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Need for Legislative Authority
For a solar check-off program to be effective, it must be
established through the legislative process. Historically, industries
have organized voluntary check-offs, but they account for only a small
share of all funding for generic efforts. Hundreds of mandatory farm
commodity promotion programs have been legislated by states or the
Federal Government. Nine out of ten U.S. farmers were contributing to
one or more of these efforts by the mid-1990s.\7\
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\7\ Armbruster, Walter J., and John P. Nichols. Commodity Promotion
Policy. 1995 Farm Bill
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The adoption of a check-off program would ensure that all
companies, both domestic and foreign, participate in a campaign to
educate consumers on solar energy technologies. Authority to collect
assessments is facilitated by the government for the practicalities of
dealing in interstate commerce and the realities of enforcement to
eliminate the problem of ``free riders,'' or nonpaying companies that
might otherwise benefit economically from programs that others have
funded.
The establishment of legislative authority would help ensure that a
solar check-off program would succeed. Though it may be viewed as an
industry-imposed ``tax,'' it is a tax that is established by the
industry, with the blessing of members of the industry, and for the
benefit of the industry. Thus, the industry would have the power to
periodically evaluate the effectiveness of the program, with a focus on
its economic benefits to industry members.
Comments on the Solar ERA Proposal
SEIA requests a few key modifications to the proposed check-off
program in the Solar ERA Act. First, current language would exclude
SEIA from nominating its member companies to the Board of the new
organization, and SEIA would not be able to have a representative
participate on the Board. As the national trade association
representing the industry, SEIA would appropriately play a significant
role in a national industry consumer awareness and education campaign.
Therefore, we request that the criteria for eligible groups be modified
to provide SEIA with the opportunity to nominate candidates and
directly participate in Board activities.
Second, while we support a scheduled industry referendum on the
continuation of the program, we believe that the current 22-month
target date does not provide enough time for the creation of a new
organizational infrastructure and the development, testing, and
execution of a national campaign. We request that the target date be
set no earlier than four years from the passage of legislation.
Additionally, we believe that the current 10 percent threshold of
companies needed to request future referenda is too low and could
potentially derail the program from being effective, and we propose
that the threshold be raised to a minimum of 25 percent.
Conclusion
A ``Got Solar'' program would be a sound investment in our
country's energy future. By providing a mechanism to increase consumer
awareness about solar energy products, we can empower the American
consumer to become part of the solution to the energy challenges we
face as a society. A check-off program would see more of our energy
purchasing dollars go towards an economically vibrant domestic
manufacturing and installation base, and promote a carbon-smart,
domestically produced energy source from the most abundant source on
the planet--the sun.
Thank you very much for your consideration of my testimony. I look
forward to answering any questions you may have.
Biography for Rhone Resch
Rhone Resch is the President of the Solar Energy Industries
Association (SEIA), the national trade association of the solar energy
industry. In this capacity he is responsible for managing all aspects
of the trade association and ensuring their success in advancing solar
energy in the U.S.
SEIA represents all solar technologies and serves as the voice of
solar energy in the United States and is responsible for all market
analysis and lobbying on behalf of the solar industry with Congress and
the Administration. SEIA's recent successes include the creation of the
residential and commercial tax credits in the 2005 Energy Policy Act
and an expansion of the Department of Energy's solar program budget
from $84 million to $175 million. SEIA also orchestrates public
campaigns working with the media to help shape public support for solar
energy.
Mr. Resch has over 15 years of experience in clean energy and
energy efficiency, both in the private sector and the Federal
Government. Prior to coming to SEIA, he was Senior Vice President of
the Natural Gas Supply Association, a trade association that represents
both major and independent companies that produce and market natural
gas.
In addition he has served as Program Manager at the EPA's Climate
Protection Division in the Office of Air and Radiation, where he
developed and implemented energy efficiency programs to reduce
greenhouse gas emissions and hazardous air pollutants from the
petroleum industry.
He also sits on the boards of the Business Council for Sustainable
Energy, the Global PV Solar Energy Council, and is Chairman of the
Western Governors Association Solar Energy Task Force.
He holds an MPA in Management from Syracuse University's Maxwell
School, a Master of Environmental Engineering from SUNY Syracuse, and a
B.A. from the University of Michigan. He lives in Washington, D.C. with
his wife Lisa and two children and has a six kW photovoltaic system on
his home.
Ms. Giffords. Thank you.
Ms. Weissman, please.
STATEMENT OF MS. JANE M. WEISSMAN, EXECUTIVE DIRECTOR,
INTERSTATE RENEWABLE ENERGY COUNCIL; VICE CHAIR, NORTH AMERICAN
BOARD OF CERTIFIED ENERGY PRACTITIONERS
Ms. Weissman. Madam Chairman, Chairman Lampson, Members of
the Committee and staff, I am very encouraged to be here this
morning and I really thank you for the opportunity.
This is a perfect time to be talking about training and
building a confident and strong workforce for solar energy.
Solar electric installations grew by over 40 percent in 2006.
If we meet the goals of the photovoltaic industry roadmap,
direct employment will increase from 20,000 now to 62,000 in
2015. By the U.S. Department of Energy's own estimates, as many
as 5,000 trained installers may be needed to accomplish their
new Solar America Initiative. Many recent and well-documented
reports and research show continued and robust investment and
growth for the solar energy market, but as the market grows, so
does the need for quality and accessible training opportunities
for these new green collar jobs.
The good news is that the framework is in place to give us
the tools we need to develop a strong workforce. NABCEP, the
North American Board of Certified Energy Practitioners, offers
professional credentials for renewable energy installers. Since
2003, NABCEP has certified 365 solar electric installers from
40 states. NABCEP certifications are based on strict
psychometric guidelines and credentialing principles. The
process is rigorous for the applicant and requires documenting
experience and passing a four-hour exam. NABCEP's competency
standard sends a clear message to consumers and public
officials that the industry stresses safe and ethical business
practices and high-quality workmanship standards. The bar has
been raised for professional services in the solar industry.
While NABCEP certifies the installer, IREC, the Interstate
Renewable Energy Council, accredits the training programs and
certifies the instructors. Credentials are awarded using
standards developed by the Institute for Sustainable Power.
These standards ensure legitimacy of what is being taught and
by whom. A system of review and audit provides a means to
compare content, quality and resources across a broad range of
training.
We see promising trends for new practitioner programs.
Community colleges, as my colleague, Joe Sarubbi, will talk
about, and technical schools are offering renewable energy
courses. These range from stand-alone courses, new energy
certificates and associate degree programs. Classes are
expanding from three- to five-day workshops to semester-long
courses.
The Committee asked me three questions. Question number 1:
Is there a sufficient number of people trained? As market
performance continues to grow, the number of current training
opportunities falls far short of meeting the demand for
qualified workers. We need more classroom and hands-on training
tailored to meet local labor needs. Alliances need to be
developed and advisory committees established between training
centers and local business. The curriculum needs to include
real-world preparation with field and on-the-roof internships.
Question 2: Are such programs necessary or useful? The
current training programs are a start at providing a critical
service that supports a strong and growing solar industry.
However, their reach is limited and training opportunities need
to be broadened. We must make sure that training programs are
teaching students the right skills to do a good job, that the
facilities include the right equipment and hardware, that safe
practices are utilized and that teachers are qualified. While
many states support workshops and training programs, New York
provides a national model for us. Installer training is a top
priority for NYSERDA, the New York State Energy Research and
Development Authority. To date, NYSERDA has invested nearly $1
million to develop seven accredited solar training centers
across the state. NYSERDA's program is one to emulate and
replicate as it serves as a proven model for future training
programs.
Question 3: How can the quality of training programs be
ensured? Training needs to be based on industry standards so
that students are taught the right skills with the right
equipment. We recommend the following. Training should lead to
defined workplace knowledge, skills and abilities. Training
should address issues of safety, codes and core competencies of
an industry-approved task or job analysis. Training should be
in an environment with appropriate facilities, tools and safe
practices. Training should offer a formal and planned learning
structure where the learner receives some sort of feedback and
their progress is monitored and training programs and learning
objectives should be assessed and receive independent approval
or accreditation.
We have the foundation in place for training and developing
a strong workforce. NABCEP's third-party certification programs
are a means for consumers to identify qualified workers. NABCEP
has set industry standards high. Now we need to provide the
training to meet these standards.
Madam Chair, I thank you for this opportunity. Members of
the Committee, thank you, and I would be happy to answer any
questions.
[The prepared statement of Ms. Weissman follows:]
Prepared Statement of Jane M. Weissman
Mr. Chairman, Representative Giffords, and Members of the
Committee, thank you for the opportunity to appear before you today to
discuss education and training programs to facilitate the adoption of
solar energy technology.
I am the Executive Director of the Interstate Renewable Energy
Council, a non profit organization working with state agencies,
communities and industry across the country. Along with technical
assistance, targeted outreach, promoting uniform guidelines and
standards, and consumer protection, we focus on some of the current and
often difficult issues facing expanded renewable energy use such as
connecting small-scale renewables to the utility grid and developing
quality assessment programs for renewable energy professionals,
products and training programs. The Interstate Renewable Energy Council
offers third-party verification of training programs and instructors
using an application and audit assessment process based on standards
developed by the Institute for Sustainable Power which is used
internationally. This framework of standards and metrics verify that
training programs and instructors have met predetermined and consistent
criteria. The Interstate Renewable Energy Council is celebrating its
25th anniversary this year.
I also serve as the Vice Chair of the North American Board of
Certified Energy Practitioners, NABCEP, a national, non profit
corporation offering professional credentials for renewable energy
installers. NABCEP was started in 2002 with the first certification
program for solar electric installers launched in 2003. To date, there
are 365 certified solar electric installers from 40 states. Both the
photovoltaic and solar thermal programs are based on strict,
psychometric principles and credentialing guidelines. It is a rigorous
process requiring documentation of experience and/or training and the
passing of a four-hour exam. NABCEP's competency standards for
certification sends a clear message to consumers and public officials
that the Industry stresses high quality, safe and ethical business
practices and workmanship standards. The bar has been raised for
professional services for the solar industry.
This is a perfect time to be talking about training and building a
competent and strong workforce.
The solar industry reports that solar electric installations grew
by over 20 percent in 2006. If the goals of the Photovoltaic Industry
Road Map are met, total installed capacity could increase to 9,600 MW
by 2015. Direct employment would increase from 20,000 now to 62,000 by
2015.\1\
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\1\ Our Solar Power Future. PV Energy Road Map. www.seia.org
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The U.S. Department of Energy estimates that as many as 5,000
trained installers may be needed by 2015 to accomplish their new Solar
America Initiative.\2\
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\2\ DOE Solar America Initiative (SAI) Funding Opportunity
Announcement, October 11, 2006. The goal of the SAI is to reduce the
cost of solar photovoltaic technologies so that they become cost-
competitive by 2015.
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A survey conducted by the investment bank Jefferies & Company in
February 2007 said that among renewable energy sources, solar power is
viewed as likely to contribute most to the world's primary energy
supplies by 2020.\3\
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\3\ March 7, 2007. RenewableEnergyAccess.com
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According to a report released in March 2007 by Clean Edge, global
clean-energy markets are ready to quadruple in the next decade, growing
from $55.4 billion in revenues in 2006 to more than $226.5 billion by
2016 for four technologies--biofuels, wind power, solar photovoltaics
and the fuel cell and distributed hydrogen market.\4\
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\4\ Clean Energy Trends 2007. Authors: Joel Makower, Ron Pernick
and Clint Wilder, Clean Edge.
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Add to these facts and market-based predictions rising retail
electric grid prices, volatile pump prices, climate change, the
increasing value of energy independence, and new and expanded state and
federal policies. All of these influences are resulting in new ``green-
collar'' jobs.
Training Trends
Over the years, the renewable energy industry has been fortunate to
have a number of training centers--the Florida Solar Energy Center,
Solar Energy International, the Midwest Renewable Energy Association,
the North Carolina Solar Center and the Great Lakes Renewable Energy
Association. These dedicated programs have provided us with experienced
instructors and well-trained students. But as the market grows, so does
the need for quality and accessible training opportunities.
We are starting to see encouraging trends.\5\
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\5\ Trends in Practitioner Training for the Renewable Energy
Trades. Weissman, J.M. and Laflin, K. Proceedings American Solar Energy
Society Conference, July 2006, Denver, CO.
More and more Community Colleges and Technical
Schools (high schools and private) are offering Renewable
Energy Courses. These range from stand-alone courses, new
energy certificates, associate degree programs, and customized
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training for business and industry.
Classes are expanding from three- to five-day
workshops to semester-long courses.
Students range anywhere from 18-45 years of age. They
may be existing college students in energy programs, other
technology disciplines, existing trades people, those looking
at changing careers or those who are currently working in the
industry and are upgrading their skills and knowledge.
Some Community Colleges are incorporating renewable
and alternative energy technology into existing trade programs
such as construction, electrical, Heating, Ventilation & Air
Conditioning, and industrial maintenance trades programs.
In Eugene, Oregon, Lane Community College Energy Management Program
offers a degree and certificate program with a concentration for
Renewable Energy Technicians.\6\
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\6\ Workforce Education for Renewable Energy: Lessons Learned from
a National Gathering of Educators. Weissman, J.M., Ferranti, A. and
Laflin, K. Proceedings American Solar Energy Society Conference, July
2007, Cleveland, OH.
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Cape Cod Community College Construction Technology program was
recently relocated under the umbrella of the Environmental/Renewable
Energy Program. All of the Renewable Energy and Energy Efficiency
courses will be electives for the Construction Tech program.
The curriculum at two technical high schools on Cape Cod in
Massachusetts has been developed so that renewable energy is integrated
into existing shops and academic areas with articulations at Cape Cod
Community College.
In January 2006, Austin Community College and the Texas State
Energy Conservation Office advertised the offering of a 48-hour, 14-
week course in solar electricity. The class at Austin Community College
sold out two weeks ahead of the official start date prompting Austin
Community College to offer a second section for the 2006 winter
semester.
In November 2005, Hudson Valley Community College in Troy, New York
opened its photovoltaic laboratory providing students hands-on
experience installing photovoltaic systems. The courses are included in
the college's Electrical Construction and Maintenance program
curriculum.
Madison Area Technical College's Consortium for Education in
Renewable Energy Technology is a partnership among multiple
institutions to share instructional resources and expertise. The
curriculum is designed to supplement traditional degree and
apprenticeship programs and serve the needs of workers and employers.
The Renewable Energy Diploma Series at North Carolina State
University is structured so that intensive technology training covers
not only the technical aspects but also the policy and business parts
of the industry.
Through internship programs, students are gaining in-field, on-the-
roof installation experiences in New York through the state and
industry mentor/student program. The program is administered by the New
York Solar Energy Industry Association and supported by the New York
State Energy Research and Development Authority (NYSERDA).
And the National Joint Apprenticeship & Training Program, the
training arm for the IBEW, offers its members and local unions quality
training in photovoltaics. In fact, they just published a text book on
Photovoltaic Systems, which is an important contribution to training
around the country.
Question 1. Is there sufficient number of people trained and if not,
is there a sufficient number of training programs?
If market past performance continues and current projections are
realized, these emerging training opportunities fall far short of
expected demand for qualified workers. The Solar Energy Industries
Association predicts that direct employment could increase from 20,000
now to 62,000 by 2015. The U.S. Department of Energy estimates that
5,000 trained installers could be needed to meet their goals. To date,
we have just 365 certified solar electric installers and 40 certified
solar thermal installers. While there are more installers who have not
become NABCEP-certified, and while some of them hold licenses providing
evidence of competency, there is still a growing demand for trained and
qualified workers.
And, even though we are seeing more Community Colleges and other
educational providers offer training programs and even with distance
learning and web-based instructional opportunities, we need more
classroom and hands-on training tailored to meet local labor needs. We
need to see alliances developed and advisory committees established
between training centers and local business and industry. Curriculum
needs to include real-world preparation for solar installers with field
and laboratory experiences provided.
Question 2. Are such programs necessary or useful for prospective
solar panel installers and consumers?
The programs described above are providing a critical service to
support a strong and growing solar industry. However, their reach is
limited and training opportunities need to be broadened.
As part of the Solar America Initiative (SAI), the DOE Solar Energy
Technologies Program is analyzing the current situation to identify
needs for the training and certification of photovoltaic system
designers and installers. A task force has been convened to study and
report on these issues.
As training programs are offered by a variety of educational
providers, how do potential students know that they will be taught the
skills and knowledge they will need to do a good job? Do the facilities
include the right equipment and hardware for training? Are there
procedures that ensure safety and safe practices? Are the programs
managed in a fiscally responsible way? Are the teachers qualified?
These are some of the questions that come to mind as more courses are
offered and enrollment increases.
While many states support workshops and training programs, New York
provides a national model. Installer training is a top priority for the
New York State Energy Research and Development Authority. NYSERDA is
supporting the development of an in-state network of training programs
to provide accessible and quality instructional opportunities for those
already in the renewable energy trades or for those who are planning to
enter the profession. To date, NYSERDA has invested nearly $1,000,000
in developing seven accredited solar training centers and continuing
education programs across the state, partnering with SUNY Delhi, SUNY
Farmingdale, the Ulster County Board of Cooperative Educational
Services (BOCES), Alfred University, Hudson Valley Community College,
the City University of New York and local Joint Apprenticeship &
Training Committees/IBEW.
The NYSERDA program is one to emulate and replicate as it serves as
a proven model for future training programs.
Question 3. How can the quality of training programs be ensured?
Training needs to be based on industry standards so that students
are taught the right skills with the right equipment.
The Interstate Renewable Energy Council, with input from industry
and education subject matter experts, recommends the following
guidelines for practitioner training:
Training should be designed to provide educational,
training, and skill development experiences that lead to
defined workplace knowledge, skills, and abilities.
Training should appropriately addresses issues of
safety, codes, and core competencies of an industry-approved
task or job analysis.
Training should be taught in an atmosphere with
appropriate facilities, tools, safe practices as well as
administrative and managerial quality.
Training should offer a formal and planned learning
structure where the learner receives some sort of feedback and
the learner's progress is monitored.
Training should be taught under the administration of
a legally registered entity.
Training programs and learning objectives should be
assessed and receive independent approval or accreditation.
Closing Remarks
The foundation is in place for training and developing a strong
workforce. NABCEP's third-party verification and certification programs
result in a means for consumers to identify qualified installers and
encourage the development of a well-qualified workforce. NABCEP has set
industry standards high. . .now we need to provide the training to meet
these standards.
Mr. Chairman, Representative Giffords and Members of the Committee,
this concludes my prepared statement. I would be happy to take any
questions.
Biography for Jane M. Weissman
POSITIONS
Executive Director, Interstate Renewable Energy
Council (IREC). 1994-Present
Responsible for all policy directions, operations, and
management for this non-profit, membership
organization. Developed the strategic route that
resulted in national recognition of the Council for its
education, procurement, and market-based programs.
Collaborate with the U.S. Department of Energy,
National Laboratories, state energy offices, other
state and municipal offices, community groups,
industry, and national organizations to promote the
procurement and use of renewable energy resources.
Developed expertise in quality assessment through the
development of certification and accreditation
programs.
National Director, Photovoltaics for You Program.
1991-1994
Directed this national commercialization initiative.
Worked with utilities, regulators, government, consumer
advocacy groups, and the photovoltaic industry.
Executive Director of the Massachusetts Photovoltaic
Center of Excellence. Commonwealth of Massachusetts. 1985-1991.
Directed this multi-million dollar solar electric
high-tech, public/private initiative. Responsible for
all policy, marketing, operations, and program
development.
EDUCATION
Harvard University, John F. Kennedy School of
Government, Program for Senior Executives of the Commonwealth
of Massachusetts, 1989.
Suffolk University, Business and Public
Administration Graduate Courses, 1974.
B.A. Hood College, Frederick, Maryland. 1970.
ANSI Standards Training Course: Requirements of the
ISO/IEC 17024
ANSI Standards Training Course: Standards Development
Process
PUBLICATIONS
Jane M. Weissman (IREC), Kirk Laflin (PETE). Trends
in Practitioner Training for the Renewable Energy Trades.
Proceedings at the ASES Solar 2006 Conference. July 2006.
Jane M. Weissman (IREC). Defining the Workforce
Development Framework & Labor Market Needs for the Renewable
Energy Industries. Proceedings at the ASES Solar 2004
Conference. July 2004.
Ward Bower (SNL), Jane Weissman (IREC), Wendy Parker
(ISP). Certification Programs for the Photovoltaic Industry--
Status and Plans. February 2003.
Barbara Martin (FSEC), Jane M. Weissman (IREC), Mark
Fitzgerald (ISP). A National Program for Certifying Solar
Electric Practitioners. Proceedings at the 8th International
Symposium on Renewable Energy Education. August 2002.
Wendy Parker (ISP), Ward Bower (SNL), Jane Weissman
(IREC). Costs and Benefits of Practitioner Certification or
Licensure for the Solar Industry. Proceedings of the IEEE 29th
PV Specialist Conference, New Orleans, LA, May, 2002.
AFFILIATIONS
Board Member & Vice Chair, North American Board of
Certified Energy Practitioners. 2001-Present
Board Member, Solar Rating and Certification
Corporation. 2005-Present.
Elected as a Fellow of the American Solar Energy
Society. 2004.
Board Member & Secretary, Institute for Sustainable
Power. 2004-Present.
Member, Solar Today Magazine Advisory Council.
Present.
Ms. Giffords. Thank you.
Mr. Sarubbi, please.
STATEMENT OF MR. JOSEPH T. SARUBBI, PROFESSOR/DEPARTMENT CHAIR,
BUILDING SYSTEMS TECHNOLOGY DEPARTMENT, HUDSON VALLEY COMMUNITY
COLLEGE
Mr. Sarubbi. Thank you. Madam Chair, Members of the
Committee, it is certainly an honor and a pleasure for me to
appear before you today to discuss the value of training
programs for the installation and maintenance of photovoltaic
systems. I truly believe the timing is right for our country to
invest in renewable energy technologies. We are witnessing a
renaissance in thinking about the way we generate and use
energy in America and solar power is a key component of this
new mindset.
As we continue to embrace solar power, we need a well-
training workforce to be responsive to this fast-growing
industry to ensure success and our country has the educational
infrastructure at the post-secondary level capable of creating
a skilled workforce in photovoltaic installation and
maintenance.
At the forefront of this training are community colleges.
With the right resources, I have witnessed firsthand the
ability of community colleges to quickly take action and
develop credit and non-credit courses, certificate programs as
well as associate's degrees to develop a skilled workforce in
myriad occupations. Hudson Valley Community College can
certainly be viewed as a case study for developing a successful
solar energy training program. We have gained national and
international recognition for our PV installers programs and
our training facilities. Our success was based on three
variables. First, a government agency such as the New York
State Research and Development Authority, who provided the
funding stream through grant opportunities as well as
tremendous guidance to help ensure success along with other
organizations such as the Interstate Renewable Energy Council
and the North American Board of Certified Energy Practitioners,
who are guiding us toward accreditation. The second variable is
collaborating with the local certified PV companies with the
expertise to recommend the best equipment for training, advice
on curriculum and on-the-job training for our students, and
third, well-trained faculty to deliver high-quality education.
Now, we weren't sure what was going to happen when we
started this process but to steal the baseball analogy, build
it and they will come, certainly held true for our solar
training programs. Once the word got out, interest came quickly
and is growing fast in many ways. From PV companies expressing
interest in hiring our students, from individuals interested in
gaining the solar training, from homeowners seeking information
about having solar systems installed, and from other schools
interested in learning from our success, there has been
tremendous synergy surrounding the development of our solar
training program, so much so that Hudson Valley Community
College hosted the first-ever national conference for educators
and trainers on renewable energy training and energy efficiency
workforce education, and that happened last November with
educators and school administrators from other 30 states and
six countries. We had somebody come from Australia who was
interested in seeing what we were doing. It was tremendously
successful and we are hosting a second conference in March
2008, and I share that because great things have come out of us
starting a training program in the solar industry. Members of
the community now have another career path. Solar companies are
happy because they can expand their services as more and more
homeowners clamor for solar power, all leading to job growth
and economic development. Furthermore, our success has opened
the door to develop wonderful partnerships with local solar
installation companies as well as large solar manufacturing
companies such as Sun Power, who uses our facilities for
training, and they are a California-based company and they come
to Troy, New York, to utilize our facilities.
In closing, I can't emphasize enough the importance of
solar--you know, certified solar training programs in ensuring
the continued growth of the solar industry. It is a critical
cog in the wheel of success. Without sound training programs,
that wheel might keep rolling for a while but it will break
down. I ask the Members of this Committee to please consider
supporting this exciting bill and thank you for giving me the
opportunity to present my thoughts on this, and I will
certainly entertain questions afterwards.
[The prepared statement of Mr. Sarubbi follows:]
Prepared Statement of Joseph T. Sarubbi
Mr. Chairman, Members of the Committee, it's an honor and a
pleasure for me to appear before you today to discuss the value of
training programs for the installation and maintenance of photovoltaic
systems.
The timing is right for our country to invest in renewable energy
technologies and develop a workforce that will meet the demands of the
ever-growing solar energy industry. We are witnessing a renaissance in
thinking about the way we generate and use energy in America and solar
power is a key component of this new mindset. In fact, there is a real
grassroots effort to increase the use of ``green'' energy technology
and its time for a national policy to keep this momentum. Moreover, our
country has the educational infrastructure at the post-secondary level
to respond to the challenges of creating a skilled workforce in
photovoltaic (PV) installation. What we need is a comprehensive
national plan for training that will help spur further development and
interest in solar energy.
At the forefront of training a workforce to meet the needs of this
emerging industry are community colleges. While most four-year
institutions gain notoriety for research and development, it's
community colleges that are, and will continue to be, responsive to
national, state and local initiatives that drive the development of
training programs. With the right resources, I've witnessed first-hand
the ability of community colleges to quickly take action and develop
credit and non-credit courses, certificate programs, and new
associate's degrees that act as a catalyst for economic growth by
providing skilled workforces. For example, Hudson Valley Community
College is a comprehensive institution that serves the greater Capital
Region of upstate New York. With more than 70 degree and certificate
programs and more than 12,000 students, Hudson Valley Community College
has positioned itself as a true partner with businesses and government
agencies in the region and across the state. The college has received
national and international recognition for its world-class technologies
programs, and its photovoltaic training program is no exception.
At the forefront of the college's success with solar energy
training, are the partnerships forged with government agencies such as
the New York State Research and Development Authority (NYSERDA), which
offers numerous grant opportunities in renewable energy technology
training. In fact, NYSERDA's funding program for the development of
photovoltaic installers was the catalyst and mechanism that allowed
Hudson Valley Community College to invest in PV training. By reaching
out to local PV Companies, Hudson Valley Community College was able to
tap into experts in the field who are Certified PV installers as
recognized by the North American Board of Certified Energy
Practitioners (NABCEP). With their help, as well as assistance from
NYSERDA, Hudson Valley Community College was able to create, in a
rather short period of time, a nationally recognized facility to train
PV installers (see exhibits 1-3). The college developed credited PV
courses to augment its Electrical Construction and Maintenance
Associate's Degree program, as well as a State University of New York
(SUNY) approved Photovoltaic Installers Certificate Program. In
addition, through the college's Workforce Development Institute,
numerous non-credit PV installer training programs have been developed
and are offered on an on-going basis.
Demand for Solar Energy Training
This collaborative effort between government, education and
business has generated significant interest and demand throughout New
York State and the entire northeast. The perfect analogy to this
venture: ``build it and they will come'' could not be anymore true. The
college was cautious in its approach to the number of skilled PV
workers it planned on training, not yet understanding the market
demands. Today, it's safe to say that the college underestimated the
public interest and PV company needs as the solar industry has
witnessed exponential growth in the number of installations of the past
few years. For example, in 2003, NYSERDA received 80 applications for
funding assistance of solar installations. By 2006 that number grew to
286 applications, and 2007 is on pace to well exceed 400 applications
(source: NYSERDA). Other agencies such as Long Island Power Authority
observed similar growth. Ever since Hudson Valley Community College
began to showcase its photovoltaic program and corresponding
facilities, interest has grown at the same rate. I receive inquiries
from individuals seeking to obtain photovoltaic skills via e-mail and
phone on a regular basis. During the past year, five (5) companies from
throughout the region have inquired about the availability of PV
students for employment. One local certified photovoltaic installation
company started its business in 2004 and had $80,000 in sales. In 2005
the company increased its sales revenue to $300,000 and by the end of
2006 it reached $1.2 million. This same company has a sales revenue
projection for 2007 that will exceed $2.4 million. Another PV company
stated that they need to hire three (3) installers for every $1 million
increase in PV sales procured. Hudson Valley Community College is
witnessing this growth first hand and is positioning itself to meet the
increase demand for installers.
Students Finding Jobs in the Solar Industry
As I stated earlier, Hudson Valley Community College was originally
unsure of the potential growth of the photovoltaic industry and decided
to move cautiously towards training a workforce that exceeded demand.
Our strategy was to supplement an already popular and successful
Electrical Construction and Maintenance associate's degree program by
introducing photovoltaic courses as an additional load to students'
schedules. The college limited the number of students who could enter
the ``PV Program'' to eight to 12 students a year. The college just
completed its second year of training. Of the eighteen (18) students
who completed the PV program four (4) chose to immediately enter the PV
field while the others sought employment with the myriad opportunities
in the electrical industry that each student is afforded upon
graduation, such as electricians, electronic technicians, electric line
workers, electrical estimators, assistant project designers, etc. This
spring, one particular PV company alone sought to hire four installers
and two designers, but they inquired too late to capture a good portion
of our electrical students who had the PV installation skills, as many
already secured employment in other areas. The college is starting its
PV Installers Certificate program this fall and is currently accepting
applications of students for the one-year program. This certificate
program, coupled with our Workforce Development Institute non-credit PV
training programs, should help reduce the current shortage of trained
PV installers.
Involvement of Local Business and the State of New York in Building
Curriculum
The success of Hudson Valley Community College's PV training
programs and the development of its photovoltaic laboratory wouldn't be
possible without the funding initiatives and guidance provided by
NYSERDA, as well as the expertise offered by local PV companies. Both
were instrumental and paramount to the advancement of a first-class
training program. In addition to the excellent laboratory facilities,
which were funded through a NYSERDA grant, our partnership with a local
PV company created the opportunity for students to work out in the
field on actual residential installations thereby augmenting their
training skills (see exhibits 4 & 5). Such a relationship has helped
ensure that our students enjoy high passage rates for the North
American Board of Certified Energy Practitioners Photovoltaic Entry
Level Certificate of Knowledge. Furthermore, Hudson Valley Community
College is currently working with the Interstate Renewable Energy
Council (IREC) as it positions itself to become a national accredited
training institution as well as offering accredited training programs.
The college expects to be accredited near the end of the year.
Yet it's the local and state partnerships that allowed Hudson
Valley Community College to be responsive to the needs of the
community. Through NYSERDA's networking Hudson Valley was able to forge
a solid partnership with California-based SunPower Corporation.
SunPower, seeking an East Coast presence for their growing business,
donated equipment for the faculty and students of the College to
utilize in exchange for SunPower's use of our photovoltaic laboratory
at intermittent times throughout the year (see exhibits 6-8). This
relationship gave our students greater exposure to more types of
photovoltaic equipment and practices. SunPower has enjoyed their
relationship with the college and is currently seeking additional
avenues of training with Hudson Valley. Moreover, other types of
training associated with photovoltaic installations have emerged that
is equally important to the success of solar technologies. Local
building inspector training as well as augmented training on electrical
codes will ensure quality installations. When New York State,
educational institutions and businesses are all invested in developing
beneficial training programs such as photovoltaic installation, then
the link between job growth and economic development becomes
transparent.
Photovoltaic training programs, much like other technology training
programs are expensive by nature. Yet, if done right, the high academic
quality of such programs becomes apparent and is usually successful in
fulfilling its mission. Community colleges are the best fit to offer
such training programs, but because of the shear nature of funding
community colleges need financial assistance to develop first class
training programs. Continued partnering with government agencies and
businesses that have a vested interest in such programs could help
build a national program that will facilitate the adoption of solar
technology.
Biography for Joseph T. Sarubbi
Joseph T. Sarubbi of East Greenbush, NY, is a Professor and
Department Chair of the Building Systems Technology department at
Hudson Valley Community College. He is a seasoned educator with more
than 35 years' experience in education and the electrical construction
and maintenance industry, and has more than 20 years' experience
developing customized training programs for firms such as General
Electric, Owens Corning, National Grid, and Georgia Pacific.
Through a strong partnership with the New York State Energy and
Research Development Authority, Mr. Sarubbi has emerged as a leader in
New York State in developing credit and non-credit instructional
programs in renewable energy technology in the areas of photovoltaic
installation and energy efficiency, and is currently establishing
training programs for the installation and maintenance of geothermal
heat pumps, and wind energy systems. Under his leadership, in 2006,
Hudson Valley Community College hosted the first-ever Renewable Energy
& Energy Efficiency Workforce Education: A National Conference for
Educators and Trainers. It was attended by individuals from 30 states
and six countries. The college will play host to the conference again
in 2008.
Mr. Sarubbi has a Bachelor's degree in vocational technical
education from State University of New York Institute of Technology in
Utica, NY and a Master's degree in education administration and policy
studies from University at Albany. He also earned his journeyman
electrician certificate through the International Brotherhood of
Electrical Workers.
Ms. Giffords. Thank you, Mr. Sarubbi.
Dr. Arvizu.
STATEMENT OF DR. DANIEL E. ARVIZU, DIRECTOR, NATIONAL RENEWABLE
ENERGY LABORATORY, U.S. DEPARTMENT OF ENERGY
Dr. Arvizu. Thank you, Madam Chair, and thank you, Members
of the Committee, for this opportunity to discuss important
issues related to the Nation's energy policies to meet our
future energy needs. I am the director of the National
Renewable Energy Laboratory in Golden, Colorado, and NREL, as
we call it, is the U.S. Department of Energy's primary
laboratory for research and development of renewable energy and
energy efficiency technologies. I am honored to be here to
speak with you today. I might note, as I preface my remarks,
that I started in the solar business more than 30 years ago as
a young engineer working on solar power towers, concentrating
solar power at Sandia National Laboratories, and we have come a
long way in that time.
I applaud the Committee for its continuing examination of
solar and other resources of renewable electricity and fuels.
If we are to ensure the Nation receives the full range of
benefits from renewable energy technologies, we need to
carefully balance and blend new technology, market acceptance
and government policies. It is not a question of whether to
rely on the market, on the research or on the government
action. As we work together, we need to solve our energy
problems by deploying all of these things simultaneously. DOE's
Solar Energy Research Program supports the development and
deployment of solar energy technologies and systems that can
help meet our nation's electricity needs and reduce stress on
our electricity infrastructure. The solar program supports
research at NREL as well as other institutions in
photovoltaics, concentrating solar power, solar heating and
lighting. Through the President's Solar America Initiative, the
SAI, the Nation's goal is to reduce the cost of solar
photovoltaic technologies so they become cost-competitive and
effective with other sources of electricity in all major U.S.
markets by the year 2015. Although the bulk of the U.S.
national program is focused on photovoltaics, I will focus my
remarks today, oral remarks, that is, on concentrating solar
power, CSP, since that is really the topic of the discussion
draft. It is primarily addressing where CSP fits into the
overall portfolio.
Recent developments in the western U.S. illustrate the
growing concern over greenhouse gas emissions, consequently a
market climate is opening up that is furthering the
encouragement to deploy concentrating solar power certainly in
the U.S. Southwest. In the United States, nine CSP power plants
totaling 354 megawatts have been operating reliably in
California for the past 16 years and there seems to be--we seem
to be poised for some growth. These plants are especially
interesting because with the addition of thermal storage, they
are ideally suited to meet peak demands of energy use in the
Southwest. Until recently, however, this CSP technology has
been stagnant, and as with all new energy technologies, cost is
the issue. CSP has had additional challenges in that this
technology requires scale to achieve its ultimate cost-
effectiveness. Couple the scale issue with high upfront capital
costs and what you have is a pretty high investment risk that
really is difficult in the traditional marketplace. In 2003,
the solar program at the Department of Energy addressed cost by
commissioning a detailed technical analysis of what this
technology could produce, and it was reviewed subsequently by
the National Academies and I participated on that panel. The
cost of CSP at that point was concluded that even though at
that time it was around 12 to 14 cents a kilowatt-hour, that it
could ultimately be down in the six to five cents a kilowatt-
hour, and we believe that today even though costs could be
exceeded.
The discussion draft language on thermal energy storage
addresses an important issue related to the intermittent nature
of solar energy and its impact on utilities and the potential
for low-cost and efficient thermal storage is one of the key
long-term attributes of large-scale CSP technologies. The
ability of CSP technologies to store energy presents an
opportunity for DOE and NREL to establish an R&D effort that
focuses on solar technologies that can produce baseload power
at five cents a kilowatt-hour, and these systems could include
storage of up to 17 hours that would compete for firm power
from coal power plants, especially when they are outfitted with
carbon sequestration technology. So it is expected that an
aggressive R&D program could achieve these cost goals by the
year 2020.
The discussion draft also addresses transmission
integration, and an important issue for CSP is that CSP is best
when the sun is most intense and you have cloudless days, as we
do in the sunny Southwest. So plants are often located in
desert or semi-arid locations where very few people live.
Transmission lines are required to bring that power from remote
locations to the urban load centers. Throughout the West,
access to transmission is generally limited because many lines
operate at or near capacity. While transmission is a problem,
it is particularly difficult for solar because solar power
plants need to be located where the solar resource is and they
do not always have close access to existing transmission lines.
Additional transmission lines would allow solar energies from
the Southwest to provide a very significant fraction of the
overall total electricity needs of the country. So early market
penetration of CSP could be driven by long-term extension of 30
percent investment tax credits for commercial solar
technologies, but if the cost of CSP power is too high when the
tax credits expire, the market will be significantly impacted
because there will be a downtown in that technology. An
objective of our program is to see that the Department of
Energy's CSP R&D activities would be to decrease the cost of
the technology in a timely fashion so the market remains
healthy when tax credits might expire.
The Solar America Initiative of the Department has doubled
the effort to accelerate the deployment of photovoltaics in the
marketplace and earlier this year 12 technology pathway
partnership projects were selected to receive up to $168
million over the next three years and the awardees contributing
over 50 percent of the funding. The new portfolio continues our
historic investment in thin films and increases support
significantly for concentrating photovoltaics and silicon
technologies.
In summary, to address our near-term needs in solar power,
we need a national strategy that promotes deployment of solar
systems and processes that are ready to serve us today. At the
same time, to address our longer-term needs and achieve a truly
significant contribution from solar power technologies, we must
make a new major commitment to the research required to deliver
the next and subsequent generations of concentrating solar
power, photovoltaics and other new technologies. We also need
to invest in the infrastructure and in the workforce required
to promote sustainable businesses and job creation. The good
news is that the U.S. can take back the global leadership that
it once had in the solar energy field. What is likely to be one
of the most important new industries of the century is solar
energy through investing wisely now and in the future. The
timing is fortuitous because by most accounts, the next big
major market for global renewable energy use is here in the
United States.
I would be happy to answer any questions. Thank you.
[The prepared statement of Dr. Arvizu follows:]
Prepared Statement of Daniel E. Arvizu
Mr. Chairman, thank you for this opportunity to discuss important
issues related to the Nation's energy policies to meet our energy
demands for the future. I am the director of the National Renewable
Energy Laboratory (NREL) in Golden, Colorado. NREL is the U.S.
Department of Energy's primary laboratory for research and development
of renewable energy and energy efficiency technologies. I am honored to
be here, and to speak with you today.
We applaud the Committee for its continuing examination of solar
and other sources of renewable electricity and fuels. If we are to
ensure the Nation receives the full range of benefits that renewable
energy technologies can provide, we will need a carefully balanced
blend of new technology, market acceptance and government policies. It
is not a question of whether to rely solely on the market, or on new
research, or on government action, as we work to solve our energy
problems. To accelerate deployment of renewable energy technologies, we
need to effectively combine all three.
It's also crucial that this mix of technology, markets and policies
be crafted so that each works in conjunction with the others. The
reality is that distinct renewable energy technologies--be they solar
photovoltaic, solar thermal, wind, biomass power, biofuels or
geothermal--are in different places in terms of their economics,
technological maturity and market acceptance. While a broad range of
policies are needed to spur on these varied technologies, the specifics
of policies and incentives to be enacted ideally must be tailored to
fit the unique requirements of each of the systems and devices we are
seeking to deploy.
My testimony will address the Committee's Solar Discussion Draft,
share with you related activities underway in the Solar Energy Program
of the Department of Energy's Office of Energy Efficiency and Renewable
Energy and provide some specific reactions to the draft from our
laboratory's perspective. I should note that on behalf of DOE, the
Administration has not had sufficient time to coordinate interagency
views on the Discussion Draft, but the Department wants to provide some
preliminary comments.
SOLAR POWER: CURRENT RESEARCH AND DEVELOPMENT PROGRAM AND POTENTIAL
CONTRIBUTION TO THE NATION'S ENERGY PORTFOLIO
DOE's Solar Energy Program sponsors research, development, and
deployment of solar energy technologies and systems that can help meet
our nation's electricity needs and reduce stress on our electricity
infrastructure. The Solar Program supports research in photovoltaics
(PV), concentrating solar power (CSP), and solar heating and lighting.
Through the President's Solar America Initiative (SAI), a major effort
within his Advanced Energy Initiative, the Solar Energy Program goal is
to reduce the cost of solar photovoltaic technologies so that they
become cost-competitive with other sources of electricity in all major
U.S. markets by 2015.
The SAI is being implemented at a critical time in the evolution of
the global solar market. Worldwide growth rates for photovoltaics have
averaged well over 35 percent for the last five years, which means the
amount of installed solar power doubles every four years or less.
However, this rapid growth is from a very small base; PV still accounts
for less than one percent of electricity generation worldwide.
Presently, several nations--including China, Germany, India, Japan,
South Korea, and Taiwan--are attempting to attain larger shares of the
global photovoltaic market by making significant public investments to
spur private industry. At the same time, technology improvements and
State incentives are stimulating domestic demand for photovoltaic
systems in the U.S. The Solar America Initiative will provide the
investment needed to expand U.S. advantages in product design and
manufacturing, assuring that American technologies play a leading role
in the growing domestic and global markets for solar electricity.
The SAI provides a unique opportunity to focus our efforts on
accelerating cost reductions and manufacturing scale-up of the domestic
photovoltaic industry to capitalize on this opportunity. As we work to
increase our energy independence and reduce our impact on environmental
resources, solar technologies offer an attractive carbon-free,
pollution-free energy resource.
In Fiscal Year 2007, President Bush requested $148 million for
SAI--a 78 percent increase over pre-initiative levels--and the
significant Fiscal Year 2007 Congressional appropriation demonstrated
that our nation's leaders are in agreement that developing cost-
competitive solar technologies is an important priority. The SAI R&D
efforts supported by this funding are expected to expand domestic
installed PV generating capacity up to 10 GW by 2015. Beyond enabling
increases in manufacturing capacity, these projects will help put U.S.
industry on track to reduce the cost of electricity produced by PV--
from current levels of $0.18--$0.23 per kWh to $0.05--$0.10 per kWh by
2015--a price that is competitive in markets nationwide.
STATUS OF CONCENTRATING SOLAR POWER (CSP) MARKETS
Recent developments in the western United States illustrate the
growing concern over greenhouse gas emissions, and consequently, a
market climate that is open to further deployment of concentrating
solar power (CSP) in that region of the country.
In September 2006, California enacted the California Global Warming
Solutions Act of 2006, which requires the state to reduce its
greenhouse gas emissions by 25 percent by 2020.\1\ In March 2007,
California and four other western states (Arizona, New Mexico, Oregon,
Washington) announced the Western Regional Climate Action Initiative\2\
in which they agreed to work together to cut their states' greenhouse
gas emissions. With the large solar resources available in the
Southwest, CSP-generated electricity could play an important role in
helping these states meet their emissions reduction goals. In the
longer-term, CSP-generated electricity could help all the states reduce
their greenhouse emissions.
---------------------------------------------------------------------------
\1\ ``AB 32 Assembly Bill,'' California Legislature, Retrieved on
September 31, 2006, from http://www.leginfo.ca.gov/pub/bill/asm/
ab-0001-0050/
ab-32-bill-20060831-enrolled
.html
\2\ Western Regional Climate Action Initiative, Feb. 26, 2007.
Retrieved on April 3, 2007 from http://www.climatechange.ca.gov/
documents/2007-02-26-WesternClimateAgreementFinal.pdf
---------------------------------------------------------------------------
Solar energy is the southwest's most abundant renewable resource.
In fact, California, Arizona, and New Mexico have enough combined solar
energy to provide all the power needed by the entire country. CSP
technology is the least expensive solar technology for providing large
quantities of electrical power, and with sufficient storage, it can
deliver baseload power. At a time when large quantities of carbon-free
power will be needed; CSP power plants, constructed primarily of
concrete, glass, and steel, can be quickly constructed and brought on
line. The yearly CO2 emissions from a 1,000 MW coal plant
are approximately 2,300,000 tons. The yearly CO2 emissions
from a 1,000 MW CSP plant would be nearly zero (there may be some need
for grid power during the operation of the plant). With access to
adequate transmission, CSP could even provide inexpensive carbon-free
electricity beyond the Southwest to other regions of the U.S.
In the U.S., nine CSP power plants totaling 354 MW have been
operating reliably in California for over 16 years, and CSP seems
poised to grow significantly in the state. Each of the three major
California utilities (Southern California Edison, San Diego Gas and
Electric, and Pacific Gas and Electric) have signed power purchase
agreements for a CSP project or have indicated an intent of doing so.
In August 2005, Southern California Edison (SCE) signed a power
purchase agreement for 500 MW of CSP dish-engine systems on a 4,500
acre site near Victorville, CA, with an option to expand the project to
850 MW. In September 2005, San Diego Gas & Electric (SDG&E) signed a
power purchase agreement for a 300 MW dish-engine project in
California's Imperial Valley, with an option of expanding the project
to 900 MW.\3\ In August 2006, the Pacific Gas and Electric Company
initiated plans with Luz II, LLC, to purchase at least 500 MW of solar
energy beginning in the spring of 2010.\4\
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\3\ ``SDG&E Signs Solar Power and Other Renewables Energy Pacts,''
San Diego Gas & Electric Press Release, September 7, 2005.
\4\ ``PG&E Announces Significant New Green Power,'' PG&E Press
Release, August 10, 2006.
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The State of Nevada has put in place tax credits enabling the
construction of a 64 MW CSP project near Las Vegas that recently came
on line. Nevada Power will purchase the power from the plant. A one MW
CSP system, completed in 2006, is operating in Arizona for Arizona
Public Service. In addition, several other utilities, under the
leadership of Arizona Public Service, are investigating the potential
of forming a consortium that would buy power from a 250 MW CSP plant
built in Arizona.
The southwestern states also have strong renewable portfolio
standards (RPS) which require that a specific portion of a state's
electricity consumption be met by renewable energy by a certain year.
RPS' are chief among the state policies that promote renewable energy,
and some even specify that a certain amount of power must come from
solar energy.
CONCENTRATING SOLAR POWER TECHNOLOGY STATUS
As with all new energy technologies, cost is an issue. But CSP has
an additional challenge: the technology requires scale to achieve its
ultimate cost effectiveness. Couple the scale issue with high up-front
capital costs and the investment risk is too large for current market
conditions.
The Solar Program addressed the cost issue by commissioning a
detailed technical analysis of CSP by an independent engineering firm
and then having the analysis reviewed by the National Research Council.
Sargent and Lundy (S&L) was selected to conduct this analysis on the
basis, among other factors, of its independence from the CSP industry
and its recognized performance in conducting due diligence studies for
the fossil power industry. S&L estimated that the cost of CSP
technology can be significantly reduced from 12-14 cents/kWh (as of
2003). Sargent & Lundey predicts projects ultimate costs for CSP
troughs at 6.2 cents/kWh and power towers at 5.5 cents/kWh. Sandia and
NREL (Sunlab) predict costs could be even lower.
Since the S&L report was completed in 2003, the experience gained
from trough plants being built in the U.S. and Spain is enabling
industry to lower their cost through mass production and building
larger plants. Since the S&L report was written, the price of steel,
concrete, copper, and other commodity materials have risen. Although
the numbers, as of 2007, are low, the figure continues to show the
potential for CSP cost reduction.
Because sunshine is most intense during the hot summer months when
air conditioners are working the hardest, solar energy is a good match
for a utility's peak load. With 3-5 hrs. of storage, CSP is also a good
match to a utility's intermediate load. After gaining market
penetration within the intermediate and peak load markets, however, CSP
could expand into baseload generation markets through the expanded use
of thermal storage, thereby providing a renewable alternative to
baseload coal power. CSP technologies convert solar energy into thermal
energy which is then stored in large tanks. This is an efficient way of
keeping the energy until it's needed, at which time the hot fluid,
often a molten salt mixture, is pumped to a power block where it is
converted to electrical power through a turbine.
The Role of Thermal Energy Storage and Transmission Integration
The Discussion Draft language on thermal energy storage addresses
an important issue related to the intermittent nature of solar energy
and its impact on utilities. Adding thermal storage to concentrating
solar power (CSP) plants enables solar energy to be provided any time,
day or night, that power is needed. Thermal storage also has the
potential for being low cost. An independent study by Sargent & Lundy
concluded that CSP costs could be reduced to between 4.3 and 6.2 cents/
kWh by 2020 for technology that utilizes thermal energy storage.\5\
---------------------------------------------------------------------------
\5\ Assessment of Parabolic Trough and Power Tower Solar Technology
Cost and Performance Forecasts, Sargent & Lundy Consulting Group, SL-
5641, May 2003.
---------------------------------------------------------------------------
The potential for low-cost and efficient thermal storage is one of
the key long-term attributes of large-scale CSP technologies. Key
advantages of thermal energy storage are:
High Value Dispatch of Electricity: Without thermal
energy storage, solar power is an intermittent power resource,
dependent on when the sunshine. Thermal energy storage allows
the collection of solar energy to be separated from the
generation of electric power, providing the ability to dispatch
generation when the value for electricity is highest.
Firming Delivery for Solar Power: The ability to
store energy and dispatch solar power when it is needed helps
make solar power plants a more reliable or firm power resource
for the utility. Firming of delivery is an important aspect of
supporting the economics of solar power plants through utility
capacity payments.
Increasing the Annual Capacity Factor: Solar power
generating systems without thermal storage achieve capacity
factors in the range of 25-30 percent. With the addition of
advanced, low-cost thermal energy storage, systems can be
economically sized to allow capacity factors of 75 percent or
higher. As a result, with the addition of thermal energy
storage it is possible for solar power plants to operate at or
near baseload conditions.
The ability of CSP technologies to store energy presents an
opportunity for DOE to establish an R&D effort that focuses on a solar
technology that can produce baseload power at about five cents/kWh.
Such systems would include 13-17 hrs. of thermal storage and would
compete with the cost of power from coal plants using carbon
sequestration technology. It is expected that an aggressive R&D program
could achieve the cost goal by 2020.
The Discussion Draft also addresses transmission integration, an
important issue for CSP plants. CSP works best where the sun is most
intense and there are few cloudy days, so plants are often located in
desert or semi-arid locations where few people live. Transmission lines
are required to bring the power from these remote locations to urban
load centers. Throughout the West, access to transmission is generally
limited because many lines currently operate at or near capacity. While
transmission is a problem for all new power generation, it is
particularly difficult for solar because solar power plants need to be
located where the solar resource is best and these are not always near
existing transmission lines. Addition transmission lines could allow
solar energy from the Southwest to provide up to 6,800 GW of
electricity to the U.S.
POTENTIAL R&D AND MARKET STRATEGY FOR CSP TECHNOLOGY
During the last three years, representatives of the DOE and NREL
solar programs have met with the energy and economic advisors to
governors, energy regulators, state legislators, utilities, and other
stakeholders in California, Nevada, Arizona, and New Mexico. These
meetings were to provide the states the economic, environmental, and
energy benefits of CSP. Each state expressed an interest in CSP,
although their interest was tempered by the high cost of the
technology. They were, however, encouraged by the Program's projections
of significant cost reduction and also showed interest in finding ways
to encourage the deployment of CSP in their states. Nevada subsequently
implemented tax incentives that have led to the construction of a 64 MW
CSP plant outside of Las Vegas.
Utilities have demonstrated a serious interest in CSP for several
reasons:
The widespread availability of solar energy
throughout the Southwest provides utilities with flexibility in
locating CSP plants near existing or planned transmission
lines.
Placing CSP plants on the ``right'' side of
congestion can reduce grid congestion and increase grid
reliability.
CSP electricity production aligns closely with
periods of peak electricity demand, reducing the need for
investment in new generating plants and transmission system
upgrades.
Thermal storage or the hybridization of CSP systems
with natural gas avoids the problems of solar intermittency and
allows the plant to dispatch power to the line when it is
needed.
Large centrally-located power plants are the types of
systems that the utilities have operated for years and with
which they are most comfortable.
Once the CSP plant is built, its energy costs are
fixed; this stands in contrast to fossil fueled plants that
have experienced large fluctuations in fuel prices during the
last several years.
The economic studies performed by the states show
that a relatively small up-front investment can result in
downstream tax revenues for the State and local governments.
Utility representatives expressed particular interest in CSP
because its ability to store energy enables solar power to be
dispatched to the grid through their entire period of peak demand, or
whenever else it is needed. CSP was also attractive to them because of
its size (50-250MW), use of conventional steam turbine power blocks,
and the ability to hybridize CSP plants with natural gas.
Utilities have indicated that even with storage and the other
advantages mentioned above, it is hard for them to justify purchasing
CSP power above 10 cents/kWh when they can buy less expensive wind
power. In California, utilities can pass along the higher cost of
renewable energy to their rate payers as long as it's under about 10
cent/kWh. Reaching 10 cent/kWh is thus important for early market
penetration. The federal investment tax credit is important because it
does much to bridge the cost gap. It is also important for the cost of
CSP power to be at 5-7 cents/kWh by 2015. So early market penetration
of CSP could be driven by a long-term extension of the 30 percent
investment tax credit for commercial solar technologies. But if the
cost of CSP power is too high when the tax credit expires, the market
will take a significant downturn or become completely stagnant. An
objective of the DOE and NREL CSP R&D activities would be to decrease
the cost of the technology in a timely enough fashion so the market
remains healthy when the tax credits expire.
To achieve this objective, we must reduce CSP costs to provide
intermediate power at 5-7 cents/kWh with 4-6 hrs. of thermal storage.
These activities would focus on developing the solar collector,
receiver, and other components of trough plants to attain the system
goal.
To reach the long-term objective of providing baseload power, we
will need to establish feasibility, develop components, evaluate, and
test new system concepts beyond the trough plant design. The concepts
likely to be examined include power towers, distributed power towers,
concentrating line focus receiver (linear Fresnel), and dishes w/
storage. The criteria for developing these technologies will include a
detailed analysis that defines the current state of the technology, the
needed advancements in efficiency and cost of each component, the
development and manufacturing pathways needed to achieve the goal, the
time to achieve the advancements, and the ability of the industry
partner to commercialize the technology.
THE PHOTOVOLTAICS R&D STRATEGY
Prior to January 2006, our research focused on technical progress
through increasing the conversion efficiencies of solar cells and
reducing the manufacturing costs of photovoltaic modules. Our national
laboratories--NREL and Sandia--implemented this R&D, which included
providing relatively stable funding to companies and universities,
resulting in steady, incremental progress. Hundreds of individual
projects were funded at the national laboratories, universities, and
companies that generated continued interest in photovoltaics throughout
the country.
But this picture changed after January 2006. We began with a change
in program strategy, along with a fresh look at the solar energy
industry by the investment community, and supportive policies from
numerous State and local programs. The focus of our research shifted
from technical progress on components to integrated PV systems. Under
the new strategy, companies funded by SAI are expected to develop
products for priority markets, and industry is expected to influence
the research agenda for the national laboratories and universities.
Dramatic progress is anticipated from multiple competitive
solicitations, coupled with an aggressive process to evaluate results
and eliminate awardees showing less than substantial progress. The
first set of large awards, called Technology Pathway Partnerships, will
support multiple industry-led partnerships over the full value-chain,
whereas smaller projects will target earlier-stage technologies. Public
attention will be attracted to these high-visibility projects, with the
intent of stimulating consumer interest and eliminating barriers to PV
deployment.
Perhaps the most dramatic evidence of this new strategy was DOE's
significant investment in a new funding opportunity for industry-led
Technology Pathway Partnerships. Entrance criteria for commercial
applicants included prototype components, pilot production
demonstration, and an established business case. At the end of three
year projects, awardees were expected to have commercial PV systems and
subsystems with annual production of greater than 25 MW. These
partnerships include collaboration with national laboratories,
universities, and suppliers to focus on the development, testing,
demonstration, validation, and interconnection of PV components,
systems and manufacturing equipment. Through these efforts, the
Partnerships are expected to reduce the installed cost to consumers to
$0.05-$0.10 per kWh by 2015--a price low enough to open up all major
U.S. electricity markets.
Earlier this year, 12 Technology Pathway Partnership projects were
selected to receive up to $168 million in DOE funding over the next
three years, with the awardees contributing over 50 percent of the
funding for these projects. Representing a broad cross-section of U.S.
industry, the projects involve more than 50 companies, 14 universities,
three non-profits, and two national laboratories in 20 states. The
selected projects' leaders are Amonix, BP Solar, Boeing, Dow Chemical,
General Electric, Miasole, Nanosolar, SunPower, United Solar Ovonic,
Konarka, GreenRay and Soliant. This new portfolio continues our
historical investment in thin films and increases support significantly
for concentrator photovoltaics and crystalline silicon technologies.
The portfolio is intended to deliver on the near-term potential in
residential markets and commercial markets, which are targeted by 32
percent and 48 percent of the funding, respectively, with longer-term
utility markets following at 20 percent.
In addition to the Technology Pathway Partnerships, DOE will be
releasing a variety of other funding opportunities to round out the PV
R&D pipeline. These opportunities will focus on developing new
materials and processes for solar electric conversion, transitioning
fundamental science studies into the fabrication of new PV devices,
shortening the timeline for companies to transition pre-commercial PV
module technologies into full-scale manufacturing, supporting
university materials science and process engineering research and
improving inverters and power electronics in distributed PV systems.
THE NREL PHOTOVOLTAICS R&D PROGRAM
The Solar Energy Research Institute (SERI), now NREL, was
originally created to develop the technologies needed to foster a
dynamic solar industry. Our Laboratory has succeeded in large part at
fulfilling this charter and has been vital to the development of the PV
industry. In recent years, this industry has seen dynamic change and
significant growth--thanks to past R&D successes at NREL.
Importantly, this change has included the emergence of significant
internal R&D at start-up and established companies, as well as a
proliferation of PV research at university laboratories around the
country. With the industry and academic elements of the domestic PV R&D
community changing significantly, in early 2007 we began to reexamine
our research strategy to ensure that it will be complementary and
relevant in years to come.
During spring of 2007, we began formulating a new multi-year
research plan--with associated personnel and equipment plans--that
recognizes this changing market context and is being developed with
input from industry and academic collaborators. This planning process
is intended to ensure the long-term vitality of NREL's research and its
mission to help foster and sustain a strong American industry.
The new plan resulting from this process will improve on the
existing concept for managing NREL's PV R&D portfolio in several
critical ways: (1) For a given technology development ``roadmap,'' the
plan will more explicitly link the parameters targeted for device
performance or process development to the market impact they would make
if commercialized (e.g., in terms of change to commercial module costs,
manufacturing equipment capital cost, or manufacturing bills of
materials); (2) It will specifically identify the conditions and
parameters under which a given device technology or process will be
sufficiently proven to be transferred via licensing or other means for
commercialization; (3) It will exhibit changing priorities over time,
as research tasks in various areas are planned to be completed and as
new technologies emerge for further development; and (4) The plan will
explicitly identify research tasks that will be performed in industry,
academia, or other institutions that are relevant to the activities and
outcomes of NREL research activities.
We are extremely excited about our progress thus far under the new
strategic planning process. And we look forward to sharing the
resulting R&D priorities and management procedures in October 2007, at
the start of our next fiscal year.
PHOTOVOLTAICS PROGRAM OUTCOMES AND BENEFITS
Upon realizing the SAI goal, it is expected that roughly two
million metric tons per year of carbon emissions will be avoided by
2015 and PV will provide approximately five GW of electricity
generating capacity--displacing roughly the equivalent of five coal-
fired power plants--enough to energy to power about 1.25 million
households. This is equivalent to 10 times the amount of PV installed
today.\6\
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\6\ DOE's Office of EERE uses two energy-economy models--NEMS-
GPRA07 and MARKAL-GPRA07--to estimate the impacts of EERE programs on
energy markets as part of its annual benefits analysis. The NEMS-GPRA07
model is a modified version of NEMS, the midterm energy model used by
the EIA. The MARKAL-GPRA07 model is a modified version of MARKAL, a
model developed by Brookhaven National Laboratory.
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Distributed solar technologies will enable our ultimate goal of
affordable zero energy homes and buildings which fulfills the
President's Advanced Energy Initiative vision of changing the way we
power our homes and businesses. Net-zero energy homes and buildings
produce as much energy as they consume through improved efficiency
combined with renewable energy, such as solar, providing needed power
and offsetting any utility-provided energy over the course of a year.
Optimizing the balance of energy efficiency improvements and solar PV
will result in the most cost effective net zero energy home or building
and connecting the solar PV system to the grid can allow customers to
sell the excess solar energy back to the utility.
Highly efficient buildings with distributed technologies reduce
peak demand, and will ease the need for expensive new generating
capacity, transmission and distribution lines as our economy grows.
Building-integrated PV can make the buildings sector a source of energy
diversity and low carbon electricity (the building sector currently
accounts for 39 percent of U.S. energy use). Total energy use in the
buildings sector is projected to increase an additional 30 percent
through 2025, and we believe that solar PV can meet much of this
demand.
As the Committee's Discussion Draft notes, educating energy
consumers is critical to achieving the market goals I have previously
indicated. One of the ways we educate Americans about the new choices
they have in heating, cooling and powering their buildings is a unique
project that encourages the development of zero energy homes called the
Solar Decathlon. The Decathlon, sponsored by DOE, challenges schools of
architecture and engineering to design solar powered, zero-carbon,
self-sustaining houses from the ground up to see which house is the
most aesthetically pleasing and which house performs the best. Twenty
collegiate teams from the United States, Canada, Puerto Rico, Spain,
and Germany will participate in this year's competition, which will be
held on the National Mall from October 12-20, 2007. The public is
invited to visit the solar village and tour the houses, which showcase
the latest green building and energy efficient technologies.
BUILDING ON MOMENTUM: STRATEGY & PRIORITIES FOR 2007
During the first 18 months of the Solar America Initiative, DOE and
NREL have worked together to implement a broad-reaching change in
strategy with one clear purpose: to make PV technologies cost-
competitive in all major domestic grid-tied markets by 2015. We
emphasize that this change was not implemented simply for the sake of
change. But rather, to take advantage of progress in module efficiency
and fabrication principally achieved by industry, universities, and the
national laboratories over the years. These successes form the
foundation for the PV systems that we will be supporting in the future.
Priorities in 2007 include continuing to implement the funding
opportunities described above. We will also establish the framework for
additional university involvement in the Technology Pathway
Partnerships and calibrate our Laboratory's research portfolio and
future role. And finally, we will ramp-up our efforts in testing and
evaluation of new product designs--an activity that is critical to
assuring the reliability of the new products we are developing with
industry.
SUMMARY: BALANCING SHORT- AND LONG-TERM R&D INVESTMENTS IN SOLAR POWER
To address our near-term needs in solar power we need a national
strategy that promotes the deployment of solar systems and processes
that are ready to serve us today. At the same time, to address our
longer-term needs and achieve a significant contribution from solar
power technologies, we must make a major new commitment to the research
required to deliver the next, and subsequent, generations of CSP, PV
and other new technologies.
The good news is that the United States can take back the global
leadership it once had in the solar energy field--what is likely to be
one of the most important new industries of this century--through
investing wisely now and into the future. The timing is fortuitous,
because by most accounts the next big market for global renewable
energy in here in the United States.
Thank you.
Discussion
Ms. Giffords. Thank you so much all of you for your opening
remarks. We have a good amount of Members here so I want to get
going pretty quickly. Let us try to limit questions and answers
to five minutes and see how far we get.
Solar Energy in Germany
I would like to kick off with some of the comments Mr.
Resch made in terms of what we can be doing as a country in
comparison to Germany. What happened in Germany, and for the
panel, you know, what can we learn from them, what are the
take-aways, what are some of the mistakes and the pitfalls?
Mr. Resch. Thank you, Congresswoman. What Germany did first
and foremost was to make a long-term investment in solar energy
and they did it during the worst economic downtown since World
War II. So what they basically said is, we need to diversify
our energy portfolio, we are becoming increasingly dependent
upon natural gas coming from Russia, and they felt it was very
important to look at what natural resources they did have in
place, and that is certainly solar, although their resources
are lower than ours was one of those resources, and they looked
at all renewables including wind and geothermal and biomass.
They created a structure which is a 20-year incentive structure
to encourage the use of renewables. It is called a feed-in
tariff, or the EEG is the acronym in Germany, and what it does
is provide again a fixed incentive over a long period of time.
It doesn't really translate, if you will, to the United States
because our electricity laws are very different but the most
important thing that they did was to give a long-term incentive
structure. Now, what has happened is, manufacturing has
expanded rapidly in Germany and they have created almost 40,000
new jobs in Germany in the last five years because of the EEG.
These are manufacturing jobs in eastern Germany, a lot of
installation jobs. You are seeing solar go up on barns, on
homes, on factories, really all over the country, and they have
gone from being a country that ignored, if you will, solar to
being the global leader. They install eight times as much PV as
we do each year. They install about 80,000 solar water heating
systems each year. In the United States, we install about 6,000
solar water heating systems. And because of that, they have
really created an economic force and growth in Germany that
frankly hasn't been seen since the high tech, frankly the chip
industry is a classic example, the U.S. technology invented in
the United States being commercialized by the Germans and the
Japanese and increasingly the Chinese. So what they have done
is provide a long-term incentive and structure for encouraging
people to use solar.
Solar Check-off Program
Ms. Giffords. Thank you. How would the proposed solar
research and promotion program or the check-off program enable
industry to promote the use of solar power in a way that it
currently cannot, and why is the involvement of the Department
of Energy for this program so useful?
Mr. Resch. The check-off program really does several
things. First and perhaps most important is, it allows all of
the industry to collectively pool its resources together. So
when you look at all of the individual companies that are out
there, they just don't have the budgets, if you will, to do a
national campaign on their own or even a branding or marketing
campaign but the beautiful thing about a check-off program, it
is a very, very small surcharge that then collectively and
certainly over time creates a pool of money that then can be
used for education and outreach. The second is really the
public perception on solar. When you do the polling and you ask
people what do they think of solar, they want to see more
solar, they want to use more solar. My gosh, you know, you
inventory--you ask anybody in this audience behind me, I
guarantee half the people would say--or more would say I want
to put solar on my house at some point in the future. But they
need to figure out how to do that. We need to have a mechanism
that allows consumers to learn more about solar, to learn that
this is what solar looks like. It is a beautiful thing. It is
elegant technology, you know, that it has incredible
environmental benefits, that although the costs may be high up
front in the long run, it does pay for itself over time and can
be a good hedge against let us just say higher energy prices.
So that type of mechanism needs to be pulled together, and what
we have found is that programs like ``Got Milk'' and the pork
program and the cattlemen's programs have worked. They have
worked effectively for agriculture and industries that again
are diverse, that have, you know, literally thousands of small
farmers or that have hundreds of major, you know, agricultural
providers but that collectively when they pool their resources
can get something done. I think the Department of Energy
becomes a critical entity because it allows, let us just say
the government input and coordination on research and public
perception and so what we would want to make sure is anything
that we are doing with this program is operating in a very
consistent manner with the Solar America Initiative and
research and development programs that are going on in the DOE,
in large part to make sure that there is no duplication and
that the federal resources are used as effectively as possible
but also to get the insight from the researchers around the
country into this program.
Ms. Giffords. Thank you.
The Chair now recognizes Ranking Member Hall. Thank you for
being here.
Mr. Hall. Thank you, ma'am. Thank you very much, and thanks
for a good panel here, and Rhone, good to see you again. You
are too young, but----
Mr. Resch. That is changing quickly, sir.
Mr. Hall.--I think you are going to be a fast learner, and
I like your natural-gas background.
Comparison of Solar Energy to ANWR
Mr. Hayden, in your testimony you have advocated a study on
locating large-scale concentrated solar power on federal land,
and you said a single 250-megawatt facility would occupy 1,250
to 2,500 contiguous acres of land. With the hard, cold facts
being that the proposed drilling areas for ANWR is 2,000 acres,
I believe that is the correct figure, with the potential for
recovering over 10 billion barrels of oil, a possible 50
percent increase in total U.S. proven reserves creating roughly
one million jobs here in the United States, my question is, can
a solar installation produce this much of a return on the same
amount of land or more?
Mr. Hayden. Thank you, Congressman, for the question.
Mr. Hall. Did you write the question? You didn't send me
the question, did you? I really want a good answer.
Mr. Hayden. You asked the question in terms of I think
productivity of the land is, and obviously we all understand
that that is a very complex topic to look at productivity of
land use and so I think there would be a very imperfect
comparison between an ANWR drilling site and a solar site. In
fact, if we look at what the challenges are to making solar
actually competitive, you know, just on shear costs, we are
challenged in the sense that nature has put together the fossil
fuel resources into highly dense form and extracting it with,
you know, resource extraction may not have a large footprint
but the counterbalance, the land use of the solar does not
deplete the resource. It is working in real time to harvest
sunlight. Secondly, there is a ripple effect where the
technology is advanced into bringing the solar into play. So I
would agree with you that if you look at the footprint alone as
one metric competing against fossil fuel in a highly dense form
is very challenging for any renewable but if you look at how
fossil fuel over its entire life cycle of being replaced could
compete with solar, then solar now has an advantage because the
technology is very efficient in terms of, say, nominally 25
percent conversion of sunlight into energy where fossil fuel
has a much lower efficiency on its entire basis. So all these
things are of course arguable in how you look at it but the
solar technology does have the opportunity to deliver forever
and----
Mr. Hall. They could exist and be compatible together?
Mr. Hayden. I think that is a very important point. We have
seen in my work of trying to combine mining uses, for example,
where they have buffer zone and land with productive uses of
solar.
Mr. Hall. With us being so totally dependent upon people
that really don't trust us and we don't trust, sitting here
with a fear that China will offer them a buck a barrel more
than we are paying them, do you like the comparison when they
say don't disturb little ANWR, the pristine little area of ANWR
when it is 19 million acres and we are using 2,000. Did you
hear the comparison that it would be like putting a postage
stamp at the end of a tennis court and saying that ruined the
whole tennis court? The good combination of the two with solar
would be the same. It doesn't hurt the land at all.
Mr. Hayden. Well, I am not sure that Alaska would be a
great place for the solar equipment. It would generate pretty
good during half the year and not so good during the other half
of the year, but I think there is a lot of opportunity for
hybrid composite uses of land.
More on Solar Check-off Program
Mr. Hall. But you make another point there. If it is dark
half the year, what are they hiding up there anyway?
I have one other question of Dr. Arvizu on the neutrality
of the Department of Energy on check-offs. Are there any other
check-off programs at DOE? Should there be a generic renewable
check-off program? Is that a good use of DOE's resources? I
will just give you the full barrel.
Dr. Arvizu. Thank you. Actually there are merits to what I
believe are intended in terms of the value that check-off
programs bring. I think the rationale at the Department of
Energy is what is the role of the Department and how should it
endorse or otherwise encourage what we think are very
appropriate education programs, and I think Mr. Resch actually
articulated very nicely the benefits and the value that
educating the public has in terms of promoting the use of
renewable energy. The question is still I think an open one
inside the Department as to whether or not the Department has,
you know, a role that couldn't be satisfied by perhaps closer
coordination with the private sector. One of the things we are
trying to do at the National Renewable Energy Laboratory is
connect very closely with the industry and with the private
sector to make sure that our goals and objectives are aligned
and these public-private partnerships provide as much benefit
both to the taxpayer as well as to the private sector. In the
end, this is about making investments. This is about having
return on those investments, putting market signals where the
value is extracted, and we have got a lot of work to do in
those particular areas. So the check-off program, although it
is important, isn't the highest priority that we are working on
but we see the merit and the value of it and open for
discussion as to----
Mr. Hall. My time is up. If I had more time, I would ask
you if being open, you mean they are going to remain neutral on
check-off, and question, why shouldn't DOE be focused on
research? And I may write you a letter and ask you those
things.
Thank you, Madam Chairman.
Ms. Giffords. Thank you, Mr. Hall, and let me also note
that in this draft legislation, no money would come directly
from DOE from the check-off. It would all come from the private
sector.
The Chair recognizes Mr. McNerney.
Mr. McNerney. Thank you, Mrs. Chairwoman, and I just want
to say that I am very excited about the future of solar and I
applaud you for the bill. It is a nicely crafted bill.
Manufacturing Cost for Solar Energy
You know, the real limitation for solar. You have talked
about education. Education is a limiting factor but the real
limitation is the price. I come from the wind industry and what
happens in that industry is that as we get on the manufacturing
curve, the cost goes down just out of production volume, but I
am not convinced that is the case with solar, especially with
photovoltaic. So my question I guess for Dr. Arvizu is, do you
see the technology in photovoltaic and in CSP leading to lower
cost with increasing volume or again is some type of technical
limitation going to prevent the cost from coming down, and if
not, could you kind of go into that a little bit for me?
Dr. Arvizu. Yeah, sure, and I know that Mr. Resch has
something else to say as well. I would offer that the incentive
programs that have been put in place both in Germany and in
Japan have demonstrated very clearly that with these policy
measures and incentives and encouraging a market which now has
exponential growth does in fact reduce the cost, and what we
are seeing is that the costs are coming down, things like
balance assistance cost inverters and installation costs and
things that relate to siting and installation are all in fact
now a much smaller fraction of the overall system cost than
they used to be. So it does inform our research programs
because I think there is plenty of space and opportunity to
reduce costs both on what I call the business end of the
technology which has to do with the conversion process from
solar to electricity, and whether that is at the cell level for
crystalline silicon technology or at the module level when it
is thin-film technology, we see tremendous progress being made
there, and it is a matter of a lot more volume, a lot of
learning curves. Clearly first-generation technology is on an S
curve, if you are familiar with how technology finds its way
into the marketplace, and you probably need to jump onto
second-generation technology, which is a different S curve with
different learning curves.
Mr. McNerney. We are past second-generation technology with
solar photovoltaic now, aren't we?
Dr. Arvizu. Well, not in the parlance that we use. You
know, first-generation technology is the technology I started
with in the 1980s and it is the staple. I sponsored this
research literally in 1985 with Dick Swanson at Stanford
University. It is now commercial product. Technology that we
are working on in the laboratory now is what we call second
generation--thin films, concentrating, a variety of high-
efficiency technologies. There is yet a third generation. That
is the organic, really high efficiency, I call it
revolutionary. It is maybe a few years down the road but we are
right now trying to get second generation into the marketplace.
So there is a lot of room to be had and I think what you will
find is maybe these companies are investing in second-
generation technology today.
Mr. Resch. And Congressman, if I could just add a couple of
points in response. We have seen historically the price of
solar come down so when the incentives for solar were dropped
in 1983, the market continued. I mean, it dropped but, you
know, we continued to use solar energy, and since 1983 we have
seen the price of photovoltaics come down by 90 percent. The
learning curve that we have seen is for every doubling of
manufacturing capacity, we see about a 20 percent reduction in
the price of photovoltaics. So what is really needed is a long-
term stable driver for the market so that if I am a
manufacturer, I am going to scale up my production. I mean,
most of the manufacturing facilities are 20-, 30-, 40-megawatt
plants. That is pretty small. We need gigawatts-scale plants,
and the only way you are going to get that is by providing a
long enough incentive so that you can make sure your investment
in that plant is actually returned. And the example I use for
wind, I think we are probably a decade behind wind. Wind has
had the production tax credit, granted on and off, but they
have had the production tax credit for 14 years. Solar has had
the investment tax credit for about 17 months. So, you know,
the market is really just starting in the United States with
respect to any kind of market incentives coming from the
Federal Government, so we are hopeful we will see a long-term
incentive that will spur manufacturing, then drive down costs.
Tax Incentives for Solar Energy
Mr. McNerney. And, you know, in wind, the tax credits had a
big impact. The initial tax credits were investment tax credits
and they caused a lot of substandard equipment to be put in the
field and it kind of hurt the industry's reputation for years
and years. What sort of tax incentive do you think would be the
most effective for solar then, given that history?
Mr. Resch. Because solar tends to be distributed generation
and having a very high upfront cost, we found that the
investment tax credit works best. At the end of the day, the
investment tax credit isn't large enough for you to put in
expensive non-operating equipment. Everything is UL listed.
Everything comes with, you know, certification. Everything has
to be grid connected, and with the investment tax credit, it
still has to pay for itself in a reasonable period of time. So
we are seeing the commercial segment of the marketplace, so
think of Lowe's, think of Home Depot, Fresh Field stores
putting solar up on their roofs where you have got an energy
manager and you have got an account watching to make sure the
system performs, very sophisticated equipment that is
performing, so the ITC works best for us.
Mr. McNerney. I mean, basically what you have just said is
that the investment tax credit is probably more effective than
production tax credits for solar?
Mr. Resch. That is correct. The production tax credit is--
the bottom line is yes, the ITC works better than the PTC.
Mr. McNerney. Thanks for your honesty there. I am out of
time.
Ms. Giffords. Mr. Inglis.
Tax Incentives and Net Metering of Solar Energy
Mr. Inglis. Following up on Mr. McNerney's questions, what
should be more effective, some kind of tax credit or a net
metering kind of proposal?
Mr. Resch. You really need both. Net metering allows the
system to work effectively, so just to give you an example, on
a day like today, even though I am using air conditioning at my
house, I am generating excess electricity. If Jane was living
next door to me, it would be going into her house and it would
be going into Hal's house as well, and what that does is, it
really stabilizes the grid. It allows utilities, if you will,
although they are still going to buy peak demand, to have less
congestion, less constraint on the distribution grid.
Mr. Inglis. It also makes it much more attractive for me to
put into a system, right, because----
Mr. Resch. Then you wouldn't have to buy a battery backup
system that would store, so it actually is a lower cost. You
almost use the grid, if you will, as your battery or as your
reserve.
Mr. Inglis. Right, and I would also have the capacity to
recoup some of my investment. I mean, we have to figure out a
way to pay for this thing, putting it on my roof, and so a tax
credit is one possibility. Another possibility is net metering.
Mr. Resch. Net metering, it differs by every state. Right
now we don't have net metering laws so what exists in Maryland
is very different from what we have in Virginia, which is very
different from what we have in D.C. And so it is very difficult
from a business model to determine which one is the right one.
If we had uniform net metering, that would make a very big
difference, and if you had time-of-use rates, which means that
you are paying for the price of--the real cost of the
electricity on a day like today, I guarantee Pepco as they are
pulling in new demand isn't paying eight cents per kilowatt-
hour. They are probably paying 20 cents a kilowatt-hour.
More on Solar Check-off Program
Mr. Inglis. Something tells me that our friends at Energy
and Commerce would say they have jurisdiction over that, that
net metering thing, but it is fun to dream about such topics.
Anyhow, so how about--speaking of jurisdiction, is this a
voluntary check-off or a mandatory check-off?
Mr. Resch. It is a mandatory check-off program that
companies then have the option of opting out and so it becomes
voluntary after it is created.
Mr. Inglis. And how does that work?
Mr. Resch. You would pay into it and then you have the
opportunity to request a refund. So what this--the way the
structure works, and this is a very important part, especially
as the U.S. market continues to develop is, we are importing--
we may be importing more and more panels from China to avoid a
free ridership use structure of the program so that everybody
pays into it initially. If they decide they don't want to
support the program for whatever reason, then they can opt out
and get a reimbursement for the money that they paid in.
Mr. Inglis. So what free rider would not go to that extra
step of asking for a refund? Just a lazy free rider that
doesn't realize their opportunity or----
Mr. Resch. It forces them to get involved. It forces them
to see the merits of a program. It forces them to either sit on
the board or at least engage with the board as to what the
program is all about and at least they understand it so they
are making a conscious decision as opposed to an ignorant, I
don't want to get involved decision, and there is probably peer
pressure that would keep people to participate. I am sure that
exists in agriculture too.
Mr. Inglis. I ask this question--does anybody know, is this
a sequential referral or something or--to Energy and Commerce.
Do we have jurisdiction over it? I don't know. It is an
interesting question if we would have jurisdiction over such a
mandatory check-off.
I yield to the Chair.
Ms. Giffords. Mr. Inglis, when we put this legislation
together, we were obviously looking at jurisdiction. Because we
had a panel that was qualified, we thought it was important to
come and have a discussion about this because this is one of
the main parts of what would be so helpful for the industry.
That is why we are still working on that.
Storage and Efficiency of Solar Energy
Mr. Inglis. And a question for the panel is, which is more
crucial to it? Is it a storage question or the efficiency
question--efficiency of conversion? As I understand it, the
solar cells--I wish I knew how to explain it. Roscoe will
explain it to us next. He has got the next question, to explain
this conversion issue and the efficiency of it. I don't know
how to express it. But we are talking a lot about storage here
and we are not talking much about the efficiency of the
conversion.
Mr. Arvizu. Let me take a stab at that. I think it really
comes down to the economics. It really comes down to how many
cents per kilowatt-hour am I paying life cycle for the power.
When you add storage to concentrating solar power, you improve
or increase the value by a tremendous amount because, as Rhone
talked about earlier, you are putting--you are allowing there
to be essentially power generation at a time when you may in
fact have peak power use, which there is a higher value on that
certainly to the utility. I know that in Spain there is a feed-
in tariff as well and they put a big premium on having storage,
in other words, being able to generate electricity even past
the normal sunlight hours, and by putting in the generation,
the developers actually get an 18--I am sorry--an 80 percent
additional return on investment by putting in the storage, so
that is just in economic terms. The efficiency is important.
Typically the cost is important so it is the efficiency and a
cost tradeoff so sometimes you have high efficiency, high cost,
sometimes you have low efficiency, low cost. Sometimes those
are equivalent, and if there is a tradeoff, I think you need to
go back to how many cents per kilowatt-hour life cycle, you
know, all in, all out kind of a metric to determine which one
has the most attractiveness to it.
Mr. Hayden. If I could jump in, there is a--Congressman,
there is a diversity of technologies in the solar field which
is a good characteristic of the technology space. We are going
everywhere from the photovoltaics that Rhone brought the
example of to concentrating solar power, which is large scale,
and if I can kind of put the example out there of, people are
very concerned about what their price of electricity is
primarily until the lights go out and then all of a sudden they
start having concern about the reliability of electricity, and
so around the world prices of electricity and reliability both
vary situationally. As we start with solar today, the primary
focus outside of this proposed work is on efficiency. Everyone
is looking at cost. But as solar becomes more successful, just
like wind has become more successful, then greater attention
gets paid to the reliability. So it depends on where you are in
the development. First you worry about cost. Then you worry
about cost plus reliability, and I think that is what is looked
at here is that we are starting to be more realistic about
solar than we were a few years ago.
Ms. Giffords. Mr. Bartlett, please.
Characterization of Support for Solar Energy
Mr. Bartlett. Thank you very much. Thank you for your
testimony. There are three groups in our country that ought to
have common cause in wanting to move away from fossil fuels to
renewables, solar included, and I am wondering if those three
groups have joined--have locked arms or are they now
criticizing the other group's premise. One is the global
warming people, and of course, after you have paid the carbon
price of producing the solar panel, there is no carbon emission
in producing power. There are the national security people, who
lament the fact that we are so dependent on foreign oil and to
the extent we can use solar, we are going to use less foreign
oil. And there are the peak oil people who believe that
although we may muddle through the global warming and the
national security, there is no muddling through peak oil. If it
is not there, it is not there. And these three groups ought to
have common cause. Have they locked arms or are they still
criticizing each other's premise?
Mr. Resch. I think everyone has been very busy and focused
on their own respective issues, but having said that, there is
a very clear unification that these three issues need to be
addressed in a very similar fashion. They are not mutually
exclusive. They have to be dealt with at the same time, and I
would say that the groups working on global warming, national
security, peak oil and certainly solar, we are engaged with all
three of those groups.
Comparison of Centralized to Distributed Solar Energy
Mr. Bartlett. Well, the solutions to those problems are
exactly the same: move away from fossil fuels to sustainable
renewables and of course solar is a big one of those. If you
have grid tie, what is the advantage of a large, centralized
production rather than putting it over 1,000 home rooftops? I
would think that the most widely--the more widely dispersed it
is, the better off it is. So why are we focusing on these big
facilities out in the desert that are a long way from
populations, and of course the further you move these electrons
over the wire, the fewer of them reach the other end of the
wire, unlike you putting a gallon of oil in the pipeline 1,000
miles away, you get a gallon of oil. You put electrons in a
wire, and if you are far enough away you get none of them out
the other end of it. So I am having trouble understanding why
we are focusing on these large, centralized productions rather
than distributing them widely over thousands of house roofs.
Mr. Arvizu. Let me start. I think our infrastructure today
is based on a concept of big power plants, big wires, and so a
lot of it has to do with, so how do we assimilate into the
infrastructure of today. There is actually a cost issue, the
larger scale and certainly in the case of concentrating solar
power, one can make the case that there is actually better
economics if you aggregate large scale, put this thing all
centrally located. There is a value of distributed generation,
which I think is to your point that I think we probably miss
and don't fully appreciate, and to a large degree we kind of
discriminate against distributed generation because it is
difficult to hang those onto the grid today. We do need an
intelligent grid. We need a grid that can accommodate a
distributed set of generation facilities but it is more
difficult today to do that. I think ultimately we get to a
point where I think distributed generation is valued at perhaps
a premium as opposed--because it allows you lots of other
flexibilities. But in today's environment, central station
power is what utilities like, and when you start--you are
talking about RPSs and those things as we have in Colorado. The
way you get there most quickly is large solar farms, large wind
farms, and that is the kind of thing that people are looking
at. I think ultimately we will get to, I think, the broader
question that you are asking, which is the value of distributed
generation.
Net Metering
Mr. Bartlett. Thank you. Unless you are producing more
electricity this month than you use, don't you automatically
have net metering? If you take the meter out and reverse it,
you run it backwards. So if you--that is why they put a seal on
it, by the way, so you can't do that. Don't you automatically
have net metering whether the power company wants it or not if
you have solar panels on your roof?
Mr. Resch. No, you do not. It depends entirely on your
meter. If you have your standard spinning meter, the answer is
yes, you have the capability of net metering, but it is
entirely dependent upon the law of that state. Each state has
different net metering laws. In some cases you might spin it
backwards and they are only going to pay you wholesale
electricity prices rather than retail electricity prices. In
some cases they are going to charge you a surcharge for
transmission and distribution. It differs by state, every
state.
Reliability of Solar Energy
Mr. Bartlett. I have a question--we need to standardize
that, of course, but I have a question about grid tie and
reliability. I have a wind machine I put up and I find out that
it is a grid-tie wind machine and it has to see 120 or it won't
produce any electricity. As soon as it stops seeing 120, it
stops producing electricity. Now, I understand the reason for
that is you don't want to electrocute the poor lineman who has
come to fix the wire because you are still pumping juice into
it after it is down, but just when I need it most, it is not
there. Wouldn't you think that we would be interested in some
backup wherever you have solar panels on your roof, and
shouldn't we have systems where you can now isolate yourself
from the grid and produce electricity for yourself with some
storage on site? Just when I need it most, now it is not there.
Mr. Resch. I think you are seeing significant advancements
certainly in the private sector, also the National Renewable
Energy Laboratory (NREL) with respect to storage technologies
so your typical lead acid batteries, your car batteries are
your best option today. I think within a couple of years you
will see some very sophisticated storage technologies at a much
lower price that allow you to do that, sir.
Mr. Bartlett. Even if I have the storage facility, my wind
machine stops working when it doesn't see 120, or 240. It just
quits.
Mr. Resch. I am afraid that is a subject for another panel.
This is just a solar group.
Mr. Bartlett. When you talk of turning that off, I
understand the need for it. You don't want to be pumping
electricity into the wire when the lineman thinks it is dead so
you are going to electrocute him. I understand that. But you
need a way to isolate your home so you still can run your
freezer and have lights and so forth when the power is off,
don't you?
Dr. Arvizu. You do, and there is power electronics that we
are now working on to solve those kinds of problems so that it
is much more user friendly. We have not really focused on those
stand-alone power applications as effectively as we can or
should have because other things have taken priority but we are
working on those.
Mr. Bartlett. Thank you.
Ms. Giffords. Thank you, Mr. Bartlett.
Solar Workforce Training Program
A couple questions for Ms. Weissman and Mr. Sarubbi.
Arizona is now the fastest-growing state in the Nation, a lot
of home building, and people are really interested obviously.
They come out there to get out of the cold and the rain and the
snow and people want to take advantage of, you know, the
wonderful sunlight we have. So in terms of this training, what
kind of skill shortage do you predict in the future related to
solar installation and maintenance with this increased demand,
and can this legislation address this looming shortage? And
also if the two of you would address the question on whether or
not we have communities with these training programs that have
actually seen an improvement in terms of the quality of the
installers of the solar panels.
Ms. Weissman. Thank you for the question, Madam Chair. I
think without a doubt, you know, what we are starting with, our
goal here is to have a strong market. In order to have a strong
market, we need to have qualified installers. We need to make
sure that consumer confidence is ensured, that you pay the
money that you are paying for a system that is installed
properly and that you don't have to come back for service calls
or for fixing the initial installation. In order to get to that
point, you need training to make sure that we have a good
installer population as well as good product to put out on the
roof or in the field. We are certainly finding that those
installers that go through the North American Board of
Certified Energy Producers (NABCEP) certification program are
demonstrating a higher level of quality of installation. Now,
that does not mean that people who are not NABCEP certified are
not qualified. I don't want to imply that. But we are finding
that having to go through the NABCEP credentialing process
really takes a hard look at some of the most important issues
including familiarity with the national electrical code, making
sure that--you know, understanding orientation, understanding
attachment to the roof, understanding wiring, understanding all
the different major tasks and subtasks that are necessary to do
a competent job so that we are finding that what the NABCEP
certification program is doing is not only certifying and
making sure that we have qualified workers but we are making
sure that the training is set to those standards to make sure
that they know what they are doing, and I think that what
NABCEP has done in addition to elevating the workforce, it has
also increased the need for good training and education. And we
get calls all the time, we get e-mails all the time, where can
I get training so I can become NABCEP certified. So what we are
seeing is that not only is the credential a great signal to
consumers but it is also increasing the need for better
training.
Mr. Sarubbi. If I could add to my colleague Jane here, New
York State Energy Research Development Authority (NYSERDA) has
tied their incentive package to people who are certified,
NABCEP certified. So at least the homeowners who are reaping
the benefits of this incentive are at least assured that they
are getting it from a certified installer, so that is helping
improve the standards. And as Jane mentioned, we are getting a
lot of phone calls for training in Hudson Valley with the
sponsorship of the Interstate Renewable Energy Council (IREC)
as well as NYSERDA are doing national electrical code training
seminars, you know, for the electrical inspectors out there but
also building inspectors. We are doing specific training in
that area, bringing as many building inspectors into the fold
and the type of solar systems that they are going to have to go
out and approve in the community. So that in itself is helping
the standards increase alone. And it is amazing. We had a web
site put up just a few months ago as we were getting our solar
program off the ground and the amount of hits that we are
getting on that web site, you know, showing the interest, you
know, from the community out there is tremendous and I am
getting nervous from the amount of e-mails that I am receiving
on a daily basis from people who are interested in the
training, either to receive the training or homeowners who are
interested in actually have somebody who is certified, you
know, to be able to install it, so they are coming to Hudson
Valley. That is where they looking for that information because
they are going out in the web: who can I get to come install a
nice solar system on the house that I know it is going to be a
credibly installed system and it is going to be--you know, meet
all the standards of industry. So we are seeing that growth.
Ms. Giffords. The Chair recognizes Mr. Udall.
More on Solar Workforce Training
Mr. Udall. Thank you, Madam Chair. I wanted to come and
hear from the panel today. This is an area, as you all know, of
great fascination but also great potential. I also wanted to
show my solidarity with Dr. Arvizu, who heads up the National
Renewable Energy Laboratory, which is in part located in my
district in Colorado. This is such an exciting time for us I
think as a country and as a broad industry. In Colorado we
recently passed Amendment 37, which put a renewable portfolio
standard (RPS) in place for the State of Colorado, and I took
advantage of that opportunity. I now have a three and one half
kilowatt system on my roof. It is fun to make electricity and
at the right time of day to go out and see the meter running
backwards and knowing that you are not only reducing your own
bill but you are putting some power back on the grid. So I want
to thank the Chairwoman for holding this really, really
important hearing and giving us the opportunity as Members of
Congress not only to learn more about what the potential is but
also what we can do to help provide greater incentives. Having
arrived late, I don't know all the questions that have been
asked but I am curious, given the great team that came to
install the system on my home, what sorts of stories that the
panel has heard both positive and in some cases negative about
workers without training attempting to install solar panels. I
don't know who would be best to speak to that question. Ms.
Weissman?
Ms. Weissman. Thank you, Congressman. Well, there are
always stories to tell, and I think that we were finding
problems. We are seeing the problems. You know, shading is a
big issue. Certainly in some parts of the country with, you
know, the trees, a small tree today could be a big tree
tomorrow and so are seeing that those, you know, installers who
are not properly trained are not, you know, realizing that
shading is a real issue, and if they don't see the tree and the
leaves and even the trees in the winter when there are no
leaves in certain parts of this country that this will be a
problem. Most states do require that a licensed electrician do
the final hookup of the system, and we think that is great and
that is how it should be, but what we are also finding is that
different trades who know their trade very well may not know
solar very well, and so certainly training is very important on
the actual, you know, the characteristics of solar and the
technology and what is needed to put up a good system. So what
we are finding and you know, what we are seeing now too with
more incentives going on both at the State level and the
federal level, is what we want to prevent is any guy or gal
with a truck and a ladder to think they can put this stuff up
on the roof. That is not true. You know, it is going to be a
problem. So that even those people that may feel that they are
doing a good job may in fact not be. It was interesting, when
we started NABCEP, the certification program, we had a lot of
the old timers say, you know, I am not going to take a test, I
know what I have been doing, I have been doing this for 20
years, grandfather me in, and we said absolutely not; we are
not going to give you a seal of approval. You know, if you know
what you are doing, you are going to pass this four-hour exam
and, you know, that will show proof that we can give you the
certification mark. So we are pretty serious in terms of making
sure that if we are going to certify somebody, they know what
they are doing and prevent some of the stories that we have
heard or that we have seen, some of the mistakes that have been
made, some of the stupid mistakes that have been made out in
the field. What we want to make sure is customers are going to
get, you know, a well-run system that is going to last a long
time.
Mr. Resch. And just to add one other comment. The IBEW has
done, I think an excellent job in training in certain key
markets but starting to go national training their members to
certify and install solar systems in an appropriate manner. So
I think that--when you start to see that shift where you have
large trade unions, where you have, you know, large roofer
groups starting to reach out and train and educate and, if you
will, give them new skill sets, I think that is a fundamental
sea change in the capability of installers going forward.
Certainly linking with Jane's program at NABCEP is absolutely
critical as well.
Ms. Weissman. But if I can just add onto Mr. Resch's
comment, the International Brotherhood of Electrical Workers
(IBEW) and the National Joint Apprenticeship and Training
Committee (NJATC) do sit on the board of directors of the North
American Board of Certified Energy Practitioners so we have
been very involved with the union from day one. In addition,
the NJATC, the training arm for the IBEW, just published a
fantastic textbook on photovoltaic systems which I know that a
lot of the community colleges are beginning to use as their
main learning tool.
Mr. Udall. I see my time has expired. If the Chairwoman
would indulge me for 30 more seconds?
Speaking to your comment about shading not only with leaves
on trees but the tree branches themselves, that was one of the
processes we had to go through. We had a big old cottonwood
tree that was blocking at certain times of the day the system,
and I found out in the process of installing the system that if
you have any shading on any part of the system, it affects the
overall system in very dramatic ways. So we had to make the
decision. It was almost like letting go of your firstborn
child, taking down this tree, but I was convinced that taking
down the tree was worth the pain because of the benefits that
you accrue, and I was told that taking down the tree but at the
same time installing the system was the equivalent of planting
100 more trees. So I hope that sales job was accurate. This was
a learning process for myself and my family.
I thank the Chairwoman for her indulgence and for holding
this very, very important hearing. These technologies and what
our economic future will involve. It is also about energy
security and about environmental benefits, so this is very,
very important. Thank you.
Ms. Giffords. Mr. Inglis.
Mr. Hayden. Could I add to some of those comments, Madam
Chair? Some comments have been made including yours just now
which I would like to kind of try to--understanding though that
the issues that we are running into about the shading, the
tree, distributed--point up that there is need for more than
one piece of the solar solution and the distributed solution
that has a lot of public popularity has its limits that are
important for us to overcome to get a large percentage of our
energy to come from solar. For example, we have our solar test
site in Tempe, Arizona, and I can tell you that the college
students that live in the condos and the urban area, they do
not have the option of having solar on their roof. I live in
Tempe, and even though I work on solar, my solar panels are
with APS's site at Prescott, Arizona, and the reason is, as an
engineer I know that they are far more productive than they
would be on my roof, and that is important to me. If I am going
to see a lot of our resources put into a very important solar
panel and also find storage options, I don't want to see them
wasted in an imperfect application. So to address some of the
points made, there is--about 85 percent of the energy that
comes from a Four Corners power plant makes it to the customer
in Phoenix. The highest fraction of that energy goes over the
wires. The wires are very good at delivering energy. So even
though we do see the value of rooftop solar, it certainly won't
get us to the 40 percent-type number that solar I think could
get if we are allowed to build larger facilities that are more
efficient, bring the power in to where it is needed, and
secondly, to bring in the storage technologies that would allow
the utility to help provide that backup power that otherwise
these panels can't do on their own. So it underscores I think
one of the values of this discussion is that it is not a one
size, one solution fits all. If we want mainstream America to
use solar, we have got to make it easy. We can't just make it
for us environmentally motivated folks to be the only ones
using solar. Thank you.
Efficiency of Solar Energy
Mr. Inglis. A follow-up on that. If the efficiency of the
conversion were higher, it would make the distributed more
attractive, right?
Mr. Hayden. No, not at all. The efficiency is a good
parameter but the fluctuation is the issue that talks about
reliability. In fact, when we build a project of any size, we
have to look at the reliability on customers. The Congressman
talked about the wind system tripping. That also affects things
like your power electronics, manufacturing businesses, power
quality. So if you do have an efficient system that is good for
its economics but there will be interruptions from clouds.
There will be interruptions for other reasons and we have to
match the load.
Storage for Solar Energy
Mr. Inglis. Which brings me to the other question which is
about the storage issue which, from what I have been hearing
this morning, is crucial. It seems that the section of the
bill--sections of the bill dealing with that are relatively
brief. Is there something else we should be saying in those
sections about storage besides what we are saying here?
Mr. Hayden. We discussed that before. We provided testimony
on that very subject because we see more than just the thermal
being possible storage solutions. The thermal is worth
mentioning because in the case of certain technologies, thermal
is very directly used but there is other proven large-scale
solar technology for storage--I am sorry--storage technologies
such as compressed air energy storage, other things that while
we are all waiting and working on the new batteries, there are
things that can be done sort of on a regional basis.
Mr. Inglis. I suppose these battery breakthroughs really
could also be the--I mean, there are a number of things that if
they broke could make it so that there--if we had the
breakthroughs in a various number of areas, you would have wide
scale--more use of the resource, right?
Dr. Arvizu. There is no question about that. Storage has
continued, as I call it, to be the Achilles heel of renewable
energy in general. If we just had a better storage system--we
have been working on batteries for a very long time, literally,
you know, decades. And progress is slow. Progress--we are
making progress but progress is slow, and I think ultimately,
you know, converting wind and the other intermittent type of
resources to some sort of energy carrier like hydrogen or
compressed air, whatever it might be, is really going to change
the economic equation considerably. I know I sit on the
National Science Board and we are doing things for--actually
trying to provide power at the South Pole while we are doing
some fairly energy-intensive experiments, and what are looking
for stand-alone systems that are not polluting, because right
now we have got--we are polluting in the southern hemisphere
because of all the diesel fuel that we are using down there.
And we are looking for, you know, some of these advanced
concepts that down there you would pay an exorbitant amount of
money for that particular application and there are some
things--we are looking at how can you convert wind energy to
hydrogen and to use it when you essentially--when the wind
doesn't blow or solar energy to hydrogen or a variety of other
technologies and things, and I think ultimately you need to
look at that whole system's architecture. So you need to look
at them in the broadest context. You know, I am very bullish on
the fact of zero-energy buildings. We use more energy in
buildings than in most any other application that we have and
so the distributed value on a building that is efficiently
designed with its own power generation source and its own
storage has great value and benefit. At the systems level, is
it still a little bit costly although we are making huge
progress and we have got examples of Habitat for Humanity homes
that generate more energy that they consume, and so it can be
done on a modest building, and it is a matter of changing a
variety of things. It is what we talked about earlier, bring
the price signal where the decisions are being made. You know,
construction for buildings is not incentivized to save energy.
And so all those things need to be part of the package and I
think we need to look more holistically at the whole issue.
Conversion to Hydrogen
Mr. Inglis. To the objection I hear, and when I talk about
hydrogen, about why convert, just out of curiosity, it is not
exactly a subject of this hearing but why convert to hydrogen
in those cases you talked about, particularly at the Poles
where Dr. Bartlett and I saw the same thing you are talking
about, diesel fuel being brought in belching out the
smokestacks when we got a lot of wind and a solar there.
Dr. Arvizu. The why convert part is because it really is an
elegant solution. You don't pollute anything, obviously. You
convert--you know, you change water to hydrogen and oxygen and
then you use the energy and it converts back to water. It is
very costly at this point and that is the reason that we don't
do it more, you know, uniformly elsewhere. But in that
particular environment, the cost that you pay for the energy of
transporting fossil fuel down there is exorbitant and there is
just no reason why you wouldn't in terms of economics do the
thing that is less environmentally insulting than the other
thing.
Mr. Inglis. Thank you.
Ms. Giffords. Mr. Hall.
Mr. Hall. Thank you.
More on Solar Check-off Program
Mr. Resch, you know, as in some other fields, global
warming, for instance, everybody talks about the cost and the
fears and the projections and predictions and all but most of
those people that are recommending that we just go all out on
global warming fail to talk about cost. They shy away from
that. They don't want to talk about who has to go by the cash
register at a time when China is polluting on an increasing
ratio with coal. So I will ask you something. How about the
industry? Has anyone expressed any concern about planning the
assessment, and will this result in increased cost to the
consumer? I don't see how you can keep from it, but you would
have to answer that. And how much would the assessment be and
how is it going to be done, case-by-case basis or individually?
Mr. Resch. Thank you for your question, and with respect to
the check-off program, I think there is initially concern about
what is the right way to structure it, where do you assess
within the solar stream, how far upstream, how far downstream,
do you assess at the installer or do you assess at the
manufacturer, should it include all equipment, should it just
include PV modules, what about solar water heating. There are a
lot of questions and I think good questions that need to be
resolved and I think the way this program is structured is, it
has flexibility, that all the rules are not set in stone, that
there is an opportunity to adjust the rate or determine an
appropriate rate that would actually produce an appropriate
amount of money that, you know, first the industry is willing
to spend and raise and that it doesn't penalize the consumer or
penalize the manufacturer to the greatest extent. So, you know,
I would say we don't have all the answers but part of that is
the discussion with the Department of Energy and getting the
board together to determine what is the right level and just
make sure all the right players are involved. I mean, we have a
couple of suggestions in our written testimony for improvements
to the program and I think what you will find is that most or
all of the manufacturers will agree that what is needed is a
campaign along these lines. They may disagree on timing when
that program should be in place but all of them want to
participate and make sure they have a voice in the development
of that program.
Mr. Hall. Well, we got airliners that, all except
Southwest, are going broke flying full and going broke because
of fuel and they have to turn to the consumer. You might hear
in the city of Washington the cab drivers I think at midnight
last night increased their minimum fee to $2.50 instead of
$1.50. That has gone up almost 50 percent. How are we going to
keep the assessment from going to the consumer? Why wouldn't
it?
Mr. Resch. Well, there is two ways to look at it, one of
which is that as there is more competition, there is a lot more
pressure on the price downward, and when you look at the oil
and gas industry other than propane, they shy away from any
kind of structure along these lines because it actually goes
back to the producer, that the costs are passed back to the
producer, not onto the consumer because the consumer is only
willing to spend so much, and what we have really seen in the
solar industry in the last couple of years is increased
competition, increased competition to put cheaper panels. They
are scaling up manufacturing. Prices are coming down. You know,
feedstock materials are starting to increase in supply and
again putting downward pressure on the price. It is unclear. I
mean, I think if you were to step back with an economist, you
would have one--two economists, one of them would say it is
going to be passed on to the consumer, the other would say that
the manufacturers will absorb the cost. But I think what we are
looking for, you know, is a level of assessment that is small
enough so that it is not a major hit on either side, the
manufacturer's side or the installer's side but yet
collectively as this industry grows, we can use those resources
to educate the public on the benefits of solar energy.
Mr. Hall. To be continued?
Mr. Resch. To be continued. Absolutely.
Mr. Hall. Let me ask the panel, if I have some more time
here. The language of the bill provides for criminal penalties
for release of information obtained under the authority of the
Act to ``any agency or officer of the United States for any
purpose other than implementation of this Act.'' What
information do you think they are seeking to protect here? What
is being protected, and do you agree that criminal penalties
are necessary?
Mr. Resch. Well, I think a lot of it is confidential
business information and, you know, I think that part of that
provision you are referring to goes back to the hey, you know,
we need you to open your books in order for us to make sure
that what you are reporting to us is accurate if you are
participating in this program and that if that information
leaks out-a lot of it is CBI that you would want to make sure
that companies are comfortable with the government looking into
their books with respect to confidential business information,
if I am referring to the section of the bill that you are.
Mr. Hall. It is a mandatory program?
Mr. Resch. It is a mandatory program that companies can opt
out of.
Mr. Hall. And it is pretty strong language, ``any agency or
officer,'' that provides for criminal penalties. That is pretty
strong. Do you agree that criminal penalties are necessary?
Mr. Resch. I think that what----
Mr. Hall. You may not have an opinion.
Mr. Resch. This program is modeled after the existing
agriculture programs and, you know, what I would say is,
certainly we can discuss the right way to ensure compliance and
maybe that is an overly aggressive way and maybe the way it
works in agriculture shouldn't--you know, we shouldn't be doing
it in energy. But I would say this is modeled after existing
programs. So it seems to have worked previously but certainly
there is opportunities to modify it if necessary.
Mr. Hall. My time is up. There is a lot more we could
discuss, but I can do that with you by letter. I thank you.
Ms. Giffords. Thank you, Mr. Hall.
More on Solar Check-off Program
And Mr. Resch, just to clarify, how many other programs are
out there that we are looking at? I know we talked about milk,
we talked about beef.
Mr. Resch. There are 17 programs right now between energy
and agriculture that are promotion programs along these lines.
Ms. Giffords. And have there been problems with companies
and confidentiality and issues like this in the past that we
know of?
Mr. Resch. I would have to get back to you on that. I don't
have specific examples. I imagine that they are consistently
written in the same manner in order to address concerns that
have been raised in the past but I am not entirely sure.
Ms. Giffords. Mr. Hall, we will get back to you on that
because I am curious as well.
Mr. Bartlett.
Mr. Bartlett. Thank you very much. I would just like to
note that if there were an unending succession of ANWRs and we
were willing to pay the price for sequestering the
CO2, we wouldn't need to be talking about solar,
would we? But the reality is that there is not an unending
succession of ANWRs. I have ten kids, 15 grandkids and two
great-grandkids, and wouldn't it be nice if I left them a
little energy for their future, which is one of the reasons I
won't vote to drill in ANWR until they commit to me they are
going to use all the energy from ANWR to invest in alternatives
because today we have no surplus energy to invest in
alternatives or oil wouldn't be $69 a barrel, right?
I would also like to note that unless you are making
hydrogen from a non-fossil fuel, using hydrogen probably
results in a larger carbon footprint than not using it unless
you are going to use it in a fuel cell, which we don't yet have
because you will always get less energy from the less hydrogen
that you get from the energy source in which you produced it.
If that is a fossil fuel, obviously burning hydrogen in a
reciprocating engine is going to leave a larger carbon
footprint than if you hadn't used the original fuel. Just
noting how we are creatures of habit, I was at the South Pole
twice in the last five years. For six months the sun shines all
day, every day and the wind never stops blowing, and we create
essentially all of our power there from flown-in diesel. Now,
is that dumb? We are really creatures of habit, aren't we?
You know, the sun is 93 million miles away. I have a place
in West Virginia. My friends are amazed that I make ice from
the sun. I have a Sun Frost refrigerator hooked up. But I put
my first solar panels on the roof. I have 153 acres. They said,
why in the devil are you doing that. You know, the sun is 93
million miles away. If I put it on the roof or on the ground
beside the building, it makes no difference as far as the sun
is concerned. It is very much cheaper and easier to put it down
on the ground. So unless you are in a subdivision and have got
to put it on your roof, don't put it on your roof. It is a
whole lot easier to maintain on the ground. A big cost, a big
part of the cost of putting in these solar panels is just the
carpentry or whatever you want to call it to mount these
things, and you don't need to have some guy do that, you know.
The Home Depot has a great slogan, ``You can do it. We can
help.'' We need to be telling these people how to mount it. I
don't have any problem with a certified electrician hooking up
the power. Wiring them and hooking it is a very small part of
the cost of putting them in, and you don't need to have
somebody come put it in. If you can change a faucet washer, you
can install solar panels. It really isn't that tough. So I
would just encourage you, you don't need to further increase
the cost of putting these in. You can do it; we can help, and
we need some help out there like, you know, you don't put it
where it is going to be shaded and so forth.
More on Storage for Solar
Let me ask you a question about storage. Isn't it true that
for these large facilities, it is hard to beat the battery that
never fails, which is--unless you have to replace the pump or
the turbine. Why don't we just pump water uphill and then let
it flow back when we need the energy? Isn't that about as good
a battery as we can get with about as high efficiency as any
battery we have got?
Mr. Hayden. Simple answer, yes.
Mr. Bartlett. Yes. If the project permits it, why shouldn't
we be doing that everywhere?
Mr. Hayden. Well, everywhere including desert climates
where water is--Arizona is an example where it is done today on
hydro plants that exist. Creating a new hydro plant just for
that purpose would require a high reservoir, a low reservoir,
water, et cetera. So those are the practical issues. I do
recognize pumped hydros being a very excellent efficient
solution when you can do it. Compressed air is another one that
we are looking at it because it has similar favorable
attributes, different implementation. But in terms of Arizona
as an example, most of the lakes, water flows downhill so there
are those places where it has been done, Roosevelt Lake and
others, I believe, but I think that in terms of creating new
lakes just for that purpose, that would be quite a challenge on
the water side.
Mr. Bartlett. There are a lot of places where the
topography and the water available----
Mr. Hayden. If I may, I know that those discussions have
been taken to the dam operators and they have had challenges in
terms of their most economical operation of that asset. So you
would have to take that question to some of the existing dam
operators.
Mr. Bartlett. I would just like to note that if you don't
have electricity, the thing you miss the most is lights, and it
is very easy, and I would encourage--I would hope that we would
encourage people if they are putting in a stand-alone system
that they use direct current lights. You don't need an
inverter. It is really simple. You have a solar panel and you
have lights, and if they are direct current, they work, and
there is really nothing to fail. So the first thing you miss in
your home when the electricity goes off is the lights go off,
and if you are looking at those things that make life
comfortable, you know, being able to see and have lights is
very essential, and that is pretty much a failsafe system if
you have direct current, DC. If you have 120 volts, you got
that really complicated inverter full of--I don't trust
computers in these little things. They may or may not work. The
lead acid battery works all the time, doesn't it? And you don't
need anything in between the battery and your 12-volt or 24-
volt or 48-volt valise on your fluorescent lights, do you? It
is a very efficient use of electricity and very failsafe, and I
think more people ought to be encouraged to put those in, and
that is so you can see your way around the house when the
lights go out, right?
Thank you very much, Madam Chair.
Ms. Giffords. Thank you, Mr. Bartlett.
Water Use for Concentrating Solar Power
We don't have a tremendous amount of time left and I would
like the panel to focus a few minutes on this issue of water,
and Mr. Hayden, perhaps Dr. Arvizu as well. You know, obviously
out west we do have some real issues in terms of just not
having the water. We have got 25 million users on the Colorado
River right now. We are in a drought. We have increased demands
of the current water supply that we do have. So I am interested
in terms of the requirements for a CSP plant. Can they be built
to use air cooling instead of water cooling enabled to
eliminate the water requirements, and are water constraints an
obstacle to the wider adoption in your opinion of CSP
technologies?
Mr. Hayden. Thank you, Madam Chair. Yes, water is an issue.
It is one of the issues that is on the sequence of working
through the biggest challenge of cost just to get us started
which fortunately, in my years of working this, I see a lot of
progress right now so I am happy to hear that we are starting
to look at the water, meaning that we are serious about this
moving forward, and it is absolutely an issue. The present day
CSP systems use water for cooling to about the extent that a
conventional power plant does, and therefore it is acceptable
in some views but we would like to do better. Obviously a lot
of farmland is getting converted for residential largely
because of water so the water situation is not static. It is
becoming more of a pressure. So in every sense if we want to
use more of this energy technology, reducing water use is
important. In terms of the present-day designs, there is
something called air cooling where they replace the water
evaporation cycle with fans and just move the air through a
radiator-type structure. That can be done today but it wasn't
the economical solution for the present-day installations. It
is available today but we would like our cake and eat it too.
We would like it to be available and also more efficient and
less costly. Secondly, I will mention that other concentrating
solar power technologies including concentrated photovoltaics,
dish engine technologies don't use water cooling at all. So
when we again talk about CSP, usually we are talking about the
trough technology with water cooling but there are other
technology solutions that will compete with the trough and so a
trough needs to try to move itself forward with water reduction
and at the same time these other technologies might come
forward and be low-water-use technologies. In fact, we
sometimes notice how little water is valued on a dollar basis
and yet how much it is valued on an emotional basis, and that
sort of contradiction is what we are grappling here with on its
application with solar.
Dr. Arvizu. If I could add just a little bit on that.
Absolutely, I think we have been looking at technologies that
really don't use, you know, any water that is not self-
contained in the system. You know, for a long time, I can
remember in the 1980s we looked at a variety of gas-cooled
reactors. We looked at--we have actually the best heat transfer
medium for these concentrating thermal systems is typically a
molten salt or something that has got a very high specific heat
to it. So you don't have really a contained water need for the
actual, you know, working end of those particular plants and
there are ways to get around having to use any water if you
really chose to do that, but it is a matter of economics. It is
a matter of pushing the technology and making it most cost-
effective. And there is in fact as Mr. Hayden says this whole
idea that you can put concentrating photovoltaics. The biggest
problem with these concentrating systems, as I mentioned in my
testimony, is the upfront capital cost, and one of the things
that we are looking at is how can you reduce that cost
dramatically in some of these concentrating--troughs in fact
are some things that are being pioneered right now in Australia
that are I think very cost-effective and also can be done in a
manner that is very, very miserly relative to the water use. So
this is not a problem that I believe is in any way a
showstopper or couldn't be overcome but for the will and the
R&D program that goes along with trying to stand up with some
pilots to make sure that it operates the way we think it ought
to.
Concentrating Solar Power
Ms. Giffords. A couple other questions, because I know we
are running out of time. First of all, APS, Mr. Hayden, I
understood took 14 years to construct the solar trough, 14
years, I think. Why was the hiatus so long, and is that
something that we can learn from as well?
Mr. Hayden. Well, the proper way to look at that 14 years
is, no one had done it in 14 years and we chose to pursue that,
and I will give you a pragmatic answer. I have been going to
DOE meetings for all my career and having the solar industry
run up and say buy 100-megawatt power plant and everything will
be fine. Now, we are talking about hundreds of millions of
dollars when they do that and we under a regulated structure do
not have the opportunity to just spend hundreds of millions of
dollars that is not least cost so what we chose to do was to
challenge those solar companies to make a small-scale plant
just to prove that they could get on their feet again because
the present regime of folks making the trough is not the same
folks that built it decades ago and they actually needed to
give a new start. So literally when they built our first
megawatt, it was all of a sudden kind of a deer in the
headlights moment when oh, you mean we really have to build
this thing, and they had fundamental decisions such as were
they going to use aluminum or were they going to use steel, who
were they going to get their tubes from. So fortunately, even
though one one-megawatt is a very small project, it gave them
the opportunity to start getting it together, and then when
they had the 64-megawatt opportunity in Nevada, they had
momentum. All I can say that we did was, we broke the ice. We
didn't have dollars available under our regulated structure to
buy hundreds of megawatts but we did have the dollars available
to break the ice.
More on Solar Workforce Training
Ms. Giffords. Before I turn to Mr. Inglis, Mr. Resch, if
you could address Mr. Bartlett's comments about--and I know he
had to leave--about just anyone being able to kind of put on
these solar panels and--I mean, I am not an expert but it
sounds--what I have seen is pretty complicated stuff.
Mr. Resch. There is two points I will make there. First is
that Home Depot does sell solar panels in New Jersey and in
California, and if you wanted to go out and by a solar system,
you could do it. Say you have a garden shed and you wanted to
put lights up in the back, very simple, you know, something you
could do. You are dealing with electricity so you have got to
be smart about it and so you don't want anybody--you don't want
your kids running out there and playing around with it. I mean,
it is electricity. But when you really do step back and
understand electricity, it is fairly understandable. Now, he is
referring to a direct current, a DC, versus what we actually
use in our homes, which is alternating current, so it gets a
little more complicated. You have more equipment. I decided to
use a contractor to install the solar system in my house
because I don't want to climb up on a roof, first of all.
Second of all, I don't really understand electricity all that
well in the sense of how I install it in my home, and just like
anything else, I went out and I got three bids, and so when
Congressman Udall was talking about shading and all the rest,
well, you know, there is a little bit of the buyer beware. You
want to get three bids, just like you would for any system.
When you install an air conditioning system in your house, a
hot water heater, you are going to get a couple of bids and
then find out which one is the best and which one seems the
most knowledgeable. So I would tend to say that we are not
quite there with the technology to say it is plug and play, any
consumer could go out and just quickly install it on their
house with respect to photovoltaics. I think we will get there
at some point in time. We are not there yet.
Mr. Sarubbi. Can I just add to that? Teaching electricity
in my entire career and former electrician, I would be a little
nervous to know that homeowners were going to go out on a
regular basis and install systems, you know, when we talk about
grounding needs, when we start talking about liability because
the first time there is a fire at somebody's house, the thing
you hear most often is that it came from electricity, it was an
electrical problem. So we certainly don't want to create that
environment with the solar industry where people are going to
Home Depot and not that they can't buy that small type of
system but if I am going to be putting a 3KW, seven or even
10KW system on my house, I want to know that it is installed by
a certified, you know, company that I have got longevity with
that system and so I would be a little leery about moving in
that direction at this point in the industry. And DC in
reference to AC, converters today are so much more efficient
and reliable, you know, that I don't see the conversion of
moving to DC, you know, in our house, direct current power and
retrofitting all our lights for that, you know, environment, as
opposed to staying with alternating current just doesn't make
sense at this point.
More on Solar Check-off Program
Mr. Inglis. Just one quick follow-up. We were talking
earlier about the reporting requirements and the disclosure of
information, and did anybody want to make any further comments
about that? Is there something about the disclosure of
information that was of concern in previous programs, these 17
programs?
Dr. Arvizu. I am not exactly sure what the major issues
were. We are aware of some lawsuits that have been brought
against the U.S. Department of Agriculture based on those
programs. It kind of--it highlights the fact that there is a
liability issue or risk that comes along with monitoring or
administering one of these programs, and I don't have the
details of that but I would suggest that there is a lot more to
be--to explore regarding what assumption of liabilities there
are in administering the program.
Mr. Inglis. I have no further questions, Madam Chair.
Ms. Giffords. Before bringing this hearing to a close, I
just want to thank all of our panelists and I really want to
thank you for the time and the effort that went into preparing
for your testimony today and for helping to craft this
legislation. I also want to thank the other Members for being
here and asking some great questions. I learned a lot and I
hope that Members did and the general public as well.
The record will be held open for additional statements from
the Members and for answers to any follow-up questions the
Subcommittee may ask the witnesses. The witnesses are excused
and the hearing is now adjourned. Thank you all very much.
[Whereupon, at 12:00 p.m., the Subcommittee was adjourned.]
Appendix 1:
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Answers to Post-Hearing Questions
Answers to Post-Hearing Questions
Responses by Herbert T. Hayden, Solar Technology Coordinator, Arizona
Public Service Company, Phoenix, Arizona
As the Solar Technology Coordinator for APS, my field of activity
has been on the technological assessment and advancement of solar
technologies. I am pleased to offer my views on the technical topics
such as thermal energy storage, solar integration to regional
transmission grids, and reduction of water consumption as these issues
relate to larger scale solar technologies such as concentrated solar
projects (CSP).
However, there are other aspects of the proposed legislation
pertaining to workforce training and the promotion of solar power anti
certification, which are policies more directly impacting manufacturers
and installers of photovoltaic systems (PV), and other solar-related
equipment. Those questions would be better answered by those
individuals who are more familiar with the public policy concerns
associated with the development of the solar industries. My answers in
those areas are limited and I respectfully defer to others who may feel
qualified to address those issues.
Questions submitted by Representative Ralph M. Hall
Q1. Are you familiar with the Institute of Sustainable Power? Do you
feel comfortable having them run a certification program? What type of
a fee would you envision would be required for them to ``certify''
workforce training programs?
A1. I am not familiar with the Institute of Sustainable Power
Q2. Have you reviewed the legislation being proposed here today? Do
you think it makes sense to create two additional layers of bureaucracy
for the Secretary of Energy to promote solar power or do you feel it
would be easier to just give DOE a grant to promote solar power? Please
explain.
A2. We believe the objectives of the legislation regarding thermal
storage and CSP are appropriate and productive. I have not reviewed the
referenced legislation in regards to the education and promotion of
solar power, and I do not have an opinion on those aspects.
Q3. Do you think solar power needs to be promoted in order to be
successful as an energy resource?
A3. I believe that solar power is a proven energy technology, however
the costs of solar are still too high for it to compete as an energy
resource of substantial scale. Solar costs can be further reduced as
the technology advances and matures, and incentives for the use of
solar will allow that to happen more quickly. Promotion of the benefits
of solar power can also encourage the use of solar.
Q4. Do you support the language in the bill that requires private
companies to open their books and records to Members of the Board for
inspection?
A4. I have no opinion on this question.
Q5. The language of the bill provides for criminal penalties for
release of information obtained under the authority of the Act to ``any
agency or officer of the United States for any purpose other than
implementation of this Act.'' What information do you believe this
language is seeking to protect? Do you agree criminal penalties are
necessary?
A5. I have no opinion on this question.
Q6. The language of section 9 requires the continuation of the solar
promotion board and committee should be contingent upon a vote by the
manufacturers and importers. Would you support a referendum prior to
creation of the Board and Committee? Why or why not?
A6. I have no opinion on this question.
Q7. What enforcement by the Secretary of Energy do you envision that
might warrant a civil penalty for noncompliance under section 10 of
this bill? Is this section necessary?
A7. I have no opinion on this question.
Q8. What type of investigation do you believe it would be necessary
for the Secretary of Energy to conduct under Section 11 of this bill?
A8. I have no opinion on this question.
Q9. How will your organization benefit from this legislation?
A9. APS, as a public utility with a strong commitment to the
development of renewable energy resources would derive benefits from a
comprehensive energy bill that a) provided incentives for utility use
of solar, such as the ITC, and b) aided in technical areas such as
thermal energy storage, reduced water consumption, and the integration
of CSP facilities with regional transmission grids.
Q10. What kind of yearly revenues does the solar industry have which
could be used in a promotion program as envisioned by the legislation?
A10. I do not have the knowledge of the facts pertaining to solar
industry revenues.
Q11. Where does each of you see solar power as a part of the Nation's
energy mix by 2015 by percentage if this bill is enacted?
A11. Solar is the largest renewable energy resource in Arizona. If you
add the possibility of integrating solar energy into the regional
transmission grid and improving its availability with storage or other
methods, the contribution of solar energy in sunny regions like the
southwest could help states in the southwest and west reach their
overall renewable energy goals, which currently range from 10 percent
to 20 percent or more. I am not in a position to determine how this
would translate to the Nation's energy mix as a whole, where other
renewable energy resources may also contribute a substantial share of
the Nation's energy mix. However, from a technical perspective, the
intermittent nature of solar energy resources requires utilities to
rely heavily upon conventional energy resources to meet customer
demands and to protect infrastructure. If technology is developed to
allow for solar energy storage or other means of making the output of a
solar plant firm and reliable, this would make solar energy more viable
for a greater share of the Nation's energy mix.
Q12. What is your view of cost sharing of the training programs
between the states and Federal Government?
A12. I have no opinion on this question.
Q13. Are the unions opposed to the training provisions in the bill?
A13. I have no information on this topic.
Q14. Is the Draft discussion draft duplicative of any current
programs? If so which ones? What are the metrics that will evaluate
success of the training or solar programs?
A14. I have no information on this topic.
Q15. Recognizing the scarce resources of the Federal Government, would
you rather see tax dollars go to innovative technologies or advertising
solar power?
A15. From my perspective as a technologist, federal support for
innovative technologies is critical. However, the question about
whether advertising is a more effective way to use tax dollars is
outside of the purview of my work and is an issue better answered by
others.
Q16. In your opinion why does the contribution of solar power remain
relatively low? Is it ultimately due to the cost?
A16. Cost is certainly a major reason the contribution of solar power
in the overall energy mix remains low today. In addition, most solar
technologies generate electricity only when the sun is shining so other
sources of electricity are necessary to provide firm electric power in
response to customer demand. For those solar power technologies that
include storage capability, cost continues to be a factor since the
cost of storage adds to the overall cost of the infrastructure. Both
issues will need to be addressed for solar to become a larger part of
the electric energy mix for any electric power utility.
Q17. The Thermal Energy Storage Section of the discussion draft is
quite brief and your testimony seems to focus on the need for a great
deal of research and development into the area of thermal energy
storage. What elements do you feel should be addressed in a thermal
energy storage research and development program?
A17. As to the elements that should be addressed in a thermal research
and development program, the key is that the market related to this
technology responds to demonstrated solutions. Therefore, even existing
technology concepts could be more rapidly accepted as economically
feasible if there was a commercial demonstration, and one that
exhibited favorable cost, environmental and reliability features.
Studies and lab validations are an essential first step. However, to
attract the kind of up-front capital needed for a commercial project, a
significant demonstration with an ongoing field operation may prove
necessary to satisfy investors.
Q18. Are you supportive of a check off program for solar energy as
included in the discussion draft? Would ASP be a participant?
A18. My understanding is the term ``check-off program'' relates to a
program for solar education and promotion that would apply to
manufacturers and importers of solar products. Whether APS would be a
subject to such a check-off program will depend on a variety of
factors, therefore we would seek clarification of how the program could
apply to a utility that could be working with solar products.
Q19. You mention the use of federal land for locating large scale CSP.
What environmental, including siting concerns, do you see being faced
by such a project? 2,500 contiguous acres of land is how big of an
area? Can you give me a frame of reference?
A19. In regards to the reference to 2,500 acres of land, consider that
a square mile ``section'' of land is 640 acres. The 2,500 acre
suggestion would be about four square miles, and could accommodate
sufficient CSP facilities for the generation of approximately 500 MW of
power. The factors that would have to be considered as part of a site
selection would be an Environmental Impact Statement, consideration of
impacts on adjoining property uses, the available natural resources,
zoning restrictions, taxes, etc.
Q20. You've testified that CSP is ``the most cost effective solar
technology'' and the one that has the ``greatest potential to compete
economically'' with conventional generation. What are the relative
costs between CSP and conventional generation? Could you elaborate on
the figures you are using? Follow up--You have testified in favor of a
long-term extension of the 30 percent Investment tax credit (ITC). How
long is ``long-term'' in your mind? And as you've said the potential
for CSP to be competitive is so great, would it be so without the ITC
in place.
A20. Projects with commercially demonstrated CSP technologies are being
offered at less than twice the cost of conventional generation,
sometimes significantly less, but not quite competitive with
conventional generation. These current project costs are dependent on
the 30 percent ITC, currently available to third-party owners. The ITC
reduces the cost sufficiently to make large scale CSP attractive to
many utilities. If the ITC is not extended, we believe large scale CSP
plants will be simply too expensive and will not be constructed in the
foreseeable future. Large scale CSP plants take a minimum of three to
five years to site, permit and construct. Consequently, the ITC should
be extended for a minimum of five years, but ten years would be
preferable. We believe that ten years would be sufficient to generate
numerous projects resulting in greatly reduced costs and a sustainable
industry, independent of tax credits.
Q21. Would you favor extending the 30 percent ITC to public utilities?
If it were to be extended to these entities, would it make sense to
place greater costs for research, training, land use and environmental
concerns and the overall promotion of solar power on these public
utilities?
A21. Generally, we favor the use of a meaningful ITC program as an
incentive to public utilities for the investment in renewable energy
facilities such as CSP. However, an ITC has to be carefully weighed by
an organization contemplating using the ITC to see if its operations
qualify, and whether the conditions on the ITC can be met.
Q22. Mr. Hayden, you mention in your testimony that one of the main
issues with solar and wind energy is their intermittency. You suggest
that we need more R&D into the area of storage. Are the storage issues
different between wind and solar energy? Should we focus our energies
on storage for stationary applications generally so that we could use
the research for more than just solar technologies? Without adequate
storage technology, how much growth can reasonably be expected in the
solar energy market?
A22. Wind and solar energy definitely have different storage issues in
terms of availability and compatibility with current technologies. Wind
energy technologies and the various kinds of solar energy technologies
would integrate differently with the known available storage
technologies, such as thermal, compressed air, pumped hydro, and
batteries. For example, any source of electric energy could be used to
drive the compressor of a compressed air storage system, or to pump
water for a hydro-storage system, which stores the energy for later
use. However, since the CSP systems use thermal processes, they have a
unique opportunity to use thermal storage more directly by storing
solar heat before it is used to make electricity.
In summary, a broad support of stationary storage solutions in
conjunction with the development of CSP resources is a good idea, and
thermal storage technology is particularly well associated with current
CSP plans. Without some means of addressing the availability of
intermittent renewable energy sources, and providing incentives such as
ITC and rate recovery, public utilities like APS will continue to find
it difficult to expand solar energy in its energy mix. APS regards all
of these issues as important to the further development of renewable
energy resources and without some changes in these areas, electric
utilities will continue to primarily rely upon traditional energy
resources to meet their customer needs and protect existing
infrastructure.
Answers to Post-Hearing Questions
Responses by Rhone Resch, President, Solar Energy Industries
Association
The Solar Energy Industries Association thanks the Subcommittee for
the opportunity to testify and to provide written responses to
questions asked by the Committee Ranking Member. On the questions
pertaining to workforce training, we would defer to those expert
witnesses who appeared before the Subcommittee to testify specifically
on the workforce provisions in the discussion draft. Should you have
additional questions either relating to or independent of the responses
below, please do not hesitate to contact our offices at your
convenience.
Questions submitted by Representative Ralph M. Hall
Q1. Have you reviewed the legislation being proposed here today? Do
you think it makes sense to create two additional layers of bureaucracy
for the Secretary of Energy to promote solar power or do you feel it
would be easier to just give DOE a grant to promote solar power? Please
explain.
A1. SEIA reviewed the discussion draft prior to the hearing and has
since had the opportunity to review the provisions that were passed out
of the Committee. Based on our reading of the draft, the primary
composition of the Board, and the direction it is to provide, will come
from industry. The participation of the Secretary of Energy on the
Board seems appropriate, given the large role the DOE plays in the
development of solar technologies, but it seems clear that the solar
industry will (appropriately) remain the lead agent in disseminating
information about solar products.
Q2. Do you think solar power needs to be promoted in order to be
successful as an energy resource?
A2. Solar power, particularly in the distribution generation model,
requires increased consumer awareness in order to achieve greater
deployment. As we have stated in written testimony to the Committee,
Though growing exponentially and constantly innovating, the
U.S. solar industry is still in a nascent period. . .solar
[photovoltaics] provides less than 1/30th of one percent of the
current U.S. electricity supply. Furthermore, PV is primarily a
distributed generation technology that is installed on the
rooftops of homes and businesses throughout the U.S.--a
paradigm shift from the traditional model of centralized
electricity generation. Most solar installation companies are
small businesses, typically employing no more than a few dozen
people, and lacking the budget to reach a broad swath of
consumers.
Thus, even as consumers embrace the idea of solar power, they
are usually not fully aware of its capabilities and they have
misconceptions about how a solar energy system works in a home.
Market reports demonstrate a lack of consumer understanding
that solar electricity operates just like regular electricity
and is the same kind of electricity that a local utility
company provides. 29 percent of respondents to the May 2007
Roper survey were not aware that solar energy can power common
electric devices like computers or appliances. A number of
common myths persist about modern solar technology, such as the
belief that solar will not work in places outside of the
Sunbelt or that solar devices require more energy to
manufacture than they produce in their lifetime, and these
myths often inhibit consumer consideration of solar as a viable
energy source.
Furthermore, consumers lack information on how to find solar
companies or what solar products might be available. On a daily
basis, the most common phone calls to SEIA come from consumers
who ask, ``Where can I find solar for my home?'' The industry
has taken a number of steps to centralize this type of
information, including the development of a national solar
installer directory, Findsolar.com. Individually, several
companies have undertaken consumer awareness campaigns that
focus on basic technology education. Yet these efforts clearly
do not equate to the potential reach of a national consumer
awareness campaign.
Therefore, we believe that a national campaign promoting solar
energy would significantly increase solar's market growth.
Q3. Do you support the language in the bill that requires private
companies to open their books and records to Members of the Board for
inspection? The language of the bill provides for criminal penalties
for release of information obtained under the authority of the Act to
``any agency or officer of the United States for any purpose other than
implementation of this Act.'' What information do you believe this
language is seeking to protect? Do you agree criminal penalties are
necessary?
A3. All corporations have confidential business information that must
be safeguarded in order to encourage companies to do business in the
U.S. The relevant provisions of this discussion draft are designed to
facilitate the collection of market data for purposes of levying
assessments on producers, while safeguarding data from dilatory or
improper use. We perceive that this approach borrows largely from the
legislation used to create other industry check-off programs and would
welcome a continuing dialogue on how best to achieve effective
reporting and compliance.
Q4. The language of section 9 requires the continuation of the solar
promotion board and committee should be contingent upon a vote by the
manufacturers and importers. Would you support a referendum prior to
creation of the Board and Committee? Why or why not?
A4. SETA would be open to a referendum prior to the creation of the
Board and Committee. Furthermore, it is our understanding that the
industry would have the power to periodically evaluate the
effectiveness of the program, with a focus on its economic benefits to
industry members. This is appropriate given that then solar check-off
program is funded by a tax that is established by the industry, with
the blessing of members of the industry, and for the benefit of the
industry as well as the general public.
Q5. What enforcement by the Secretary of Energy do you envision that
might warrant a civil penalty for noncompliance under section 10 of
this bill? Is this section necessary?
A5. In studying existing check-off programs, it appears common that
enforcement powers are granted to eliminate the problem of ``free
riders,'' or nonpaying companies that might otherwise benefit
economically from programs that others have funded. Without enforcement
provisions, programs would be less likely to ensure that all companies
participate.
Q6. What type of investigation do you believe it would be necessary
for the Secretary of Energy to conduct under Section 11 of this bill?
A6. Most likely, any such investigations would be pursuant to issues of
compliance with the assessment process.
Q7. How will your organization benefit from this legislation?
A7. SETA is a 501(c)(6) non-profit association that works to make solar
power a mainstream and significant component of the U.S. energy supply.
As the discussion draft currently provides, SETA would be able to serve
on the promotion board and play a role in designing and implementing a
national consumer awareness campaign. In doing so, SEIA would address
one of its core functions: to educate consumers on the benefits of
solar technologies.
Q8. What kind of yearly revenues does the solar industry have which
could be used in a promotion program as envisioned by the legislation?
A8. Globally, the solar photovoltaic industry manufactured 2.2
Gigawatts of product in 2006. The U.S., with seven percent market
share, manufactured PV products worth slightly more than $1 billion,
with a net export of 10 percent of product.
Q9. Where does each of you see solar power as a part of the Nation's
energy mix by 2015 by percentage if this bill is enacted?
A9. As stated in SEIA's testimony, a check-off program will only
succeed if appropriate incentives are in place, including an eight-year
extension of the federal investment tax credits (ITC). Over the past
decade, due to a lack of progressive national policy, the U.S. has lost
global leadership in the race to attract solar energy manufacturing,
installation, and jobs. Long-term demand-side incentive policies in
Japan and Europe have spurred the formation of hundreds of new
companies and tens of thousands of new solar industry jobs in those
countries; Germany, with the solar resources of Anchorage, AK, installs
eight times more PV each year than the entire U.S. With appropriately
designed incentive policies and increased consumer awareness, we
anticipate that solar power could provide 10-15 percent of new
incremental generating capacity annually in the U.S. by 2015.
Q10. I note that, as indicated in Section 2(7), the program is
generally intended to improve the ``competitive position. . .of solar
energy products in the marketplace.'' Because the program includes
importers, apparently this means promoting all solar products
(including German) against other technologies. Does this matter to
American producers?
A10. We anticipate that U.S. companies would, by far and away, benefit
the most from a strong demand signal in the U.S. market. One of the
realities of solar commerce is that companies generally prefer to
manufacture high-tech products close to where the markets are, rather
than ship them overseas and go through an extensive distribution
system. In Germany, a national feed-in tariff incentive program for
solar PV has helped to industrialize some of that country's most
economically depressed regions. In the U.S., the states with the best-
designed and long-term incentive programs have attracted the most
development. Thus, in the current race for global solar energy
leadership, increasing consumers' awareness and demand for solar is one
of the optimal methods for growing the U.S. industry.
Q11. Has the SEIA tried to do a voluntary check-off program?
A11. SEIA has not tried to implement a voluntary check-off program. In
formulating our testimony on the discussion draft, we looked at other
industries that had implemented check-off programs. Historical
examination shows that industries have indeed organized voluntary
check-offs, but they account for only a small share of all funding for
generic efforts. It seems likely that the establishment of legislative
authority helps ensure the efficacy of check-off programs. This
authority facilitates the practicalities of dealing in interstate
commerce and, as mentioned above, helps to eliminate the problem of
``free riders,'' or nonpaying companies that might otherwise benefit
economically from programs that others have funded.
Q12. In your testimony, you talk mostly about distributed generation
technologies of solar energy. Do you see more of a potential for solar
energy on this smaller scale or as a large solar power plant?
A12. We believe that there is a vital role both for distributed solar
generation and for concentrating solar power (CSP) in the U.S. energy
portfolio. Both PV and CSP provide high-value electricity during peak
demand hours, from 10 A.M. to 5 P.M. on hot, sunny days, thus helping
to conserve the use of valuable natural gas. The Western Governors'
Association Solar Task Force recently identified 200 GW of prime
potential sites for CSP in the Southwest, including several sites in
Texas. Furthermore, a study by Navigant Consulting found that eligible
rooftop space in the U.S. could provide 700 GW of PV. We encourage the
greater use of CSP and PV alike.
Q13. How many members does the SEIA have? How many member
organizations I companies would benefit from additional funding for
research? How many member organizations/companies would not?
A13. SEIA represents over 550 companies involved in the U.S. solar
energy industry. Through our weekly newsletters and alerts, we actively
encourage our members to participate in collaborative R&D efforts with
the Department of Energy under the President's Solar America
Initiative, announced by the White House in the 2006 State of the Union
and first funded in FY 2007. The DOE Solar Energy Technologies Program
has, at the time of this writing, announced two rounds of funding
awards. The recipients are consortia of industry (usually several
companies per award), national laboratories, universities, and non-
profits. While it would be imprecise to guess how many companies would
benefit from future research funding, we anticipate that such funding
would continue to be directed towards collaborative research teams
incorporating companies from throughout the solar value chain.
Answers to Post-Hearing Questions
Responses by Jane M. Weissman, Executive Director, Interstate Renewable
Energy Council; Vice Chair, North American Board of Certified
Energy Practitioners
Questions submitted by Representative Ralph M. Hall
Q1a. Are you familiar with the Institute for Sustainable Power?
A1a. Yes.
The Institute for Sustainable Power's (ISP) accreditation and
certification programs began 1996. International renewable energy,
education, training, and accreditation experts worked to create ISPQ
Standard #01021, which provides the guidelines and sets the bar for the
accreditation of training programs and the certification of trainers in
the renewable energy field. The objectives of the Standard are:
to provide training programs worldwide with a
harmonized training content- and delivery-guide for the
knowledge and skills competencies for renewable energy
workforces;
to increase the confidence level that industry,
employers, consumers, financiers, and governments can have in
the participating training programs and trainers by providing a
globally accepted process of evaluation and surveillance (audit
and periodic re-evaluation) of training programs and trainers,
and periodic re-evaluation of the standards; and
to encourage safety and the training of safe
practices within the industry.
In 2005, ISP decentralized operations and created licensees for
operations in the United States, the UK and the Asia-Pacific area.
As of July 2005, the Interstate Renewable Energy Council (IREC) is
the North American Licensee for the Institute for Sustainable Power's
Quality (ISPQ) International Standard #01021 for Renewable Energy
Training Accreditation and Instructor Certification programs. IREC is
responsible for the full accreditation and certification cycle
including processing applications, assigning registered auditors,
awarding the credential, and maintaining all records of applicants,
candidates and certificants.
IREC awards formal recognition for five (5) ISPQ designations:
1. Accreditation for Training Programs
2. Accreditation for Continuing Education Providers
3. Certification for Independent Master Trainers
4. Certification for Affiliated Master Trainers
5. Certification for Instructors
Using the ISPQ International Standard #01021 as a guide, with an
approved Task Analysis as the content standard, IREC's ISPQ-Registered
Auditors evaluate candidates for accreditation and certification
through a desk and/or on-site audit. The Auditors prepare the results
of their evaluation and report to the IREC ISPQ Award Committee which
is responsible for the final decision on training accreditation and
trainer certification.
Two attached documents demonstrate the rigor and depth of the ISPQ
process: Standard #01021 and the Candidate Handbook. For further
information, please visit www.isaausa org.
Q1b. Do you feel comfortable having them run a certification program?
A1b. Yes. The Interstate Renewable Energy Council has been working for
over two decades as a non-profit organization committed to moving
renewable energy resources into the marketplace. IREC emphasizes
education and outreach, stakeholder coordination, technical assistance,
workforce development, the adoption and implementation of uniform
guidelines and standards, and consumer protection. IREC is known for
its ability to identify critical issues, build networks, and develop
and disseminate information tools that make the work of solar energy
stakeholders more effective. The Council has a proven track record for
producing material and products with the highest professional
standards, meeting deadlines and managing its operations efficiently
and effectively. (www.irecusa.org)
IREC's Accreditation and Certification Programs receive counsel and
oversight from a national, 10-person advisory board which includes
trainers, industry, and credentialing and education experts.
Q1c. What type of fee would you envision would be required for them to
``certify'' workforce training programs?
A1c. To date, below is the current fee application and maintenance fee
structure. The fees are purposely kept low. In this early stage of
operation, the fee structure does not support the full management and
administration of the ISPQ process.
Q2. How will your organization benefit from this legislation?
A2. IREC's goal is a simple one--to guarantee quality training for the
solar energy practitioner. The ISPQ process is a rigorous one and there
has been considerable resources spent to make this credentialing
process fair, based on industry-developed standards, and provide non
bias, third-party assessment of training programs. All documents and
procedures have received subject-matter expert and legal review. We
would like to see this legislation encourage the ISPQ assessment
process but our goal is to make sure that there is assessable, quality
training available for solar energy installers.
Q3. What is your view of cost sharing of the training programs between
the states and Federal Government?
A3. When possible, IREC encourages cost sharing especially for states
with System Benefit Funds. However, we do not think that states without
these funding resources should be penalized. We recommend that cost
sharing is encouraged but not required.
Q4. Are the unions opposed to the training provisions in the bill?
A4. We have not had any direct conversations with the unions in regard
to this bill. However, the National Joint Apprenticeship and Training
Committee (NJATC) supports ISPQ goals and its mission, and intends to
facilitate voluntary JATC participation in the ISPQ framework. NJATC is
presently seeking Accredited Training Program status under ISPQ for
Solar Photovoltaic (PV) Systems. The scope of this accreditation will
cover the new NJATC Solar PV System curriculum, its ITC facilities in
Alcoa, TN, NJATC instructors, its program administrative policies and
courses offered by NJATC. We would be happy to provide contact
information to the NJATC.
Answers to Post-Hearing Questions
Responses by Joseph T. Sarubbi, Professor/Department Chair, Building
Systems Technology Department, Hudson Valley Community College
Questions submitted by Representative Ralph M. Hall
Q1a. Are You familiar with the Institute for Sustainable Power?
A1a. Yes.
Q1b. Do you feel comfortable having them run a certification program?
A1b. Yes. The Institute for Sustainable Power has worked hard to ensure
that companies, installers, and training institutions meet rigorous
standards that will make certain the type of reliability needed for
positive industry growth and consumer confidence. I have intimate
knowledge of ISP's standards and believe they do well to manage quality
assurance/quality control (QA/QC).
Q1c. What type of fee would you envision would be required for them to
``certify'' workforce training programs?
A1c. An exact figure is difficult for me to ascertain. To ensure that
all institutions applying for accreditation meet ISP standards a site
visit to the institution seeking accreditation by the ISP evaluation
team is essential. In Hudson Valley Community College's situation, the
New York State Energy Research and Development Authority provided the
resources to allow the College to position itself for Accreditation.
National sponsorship of ISP could reduce the costs associated with
institutional accreditation and help these institutions move swiftly,
yet responsibly, towards accreditation. The Interstate Renewable Energy
Council (IREC) developed a fee structure for evaluation of solar
programs and institutions seeking accreditation, and Hudson Valley
Community College is working within these fee guidelines. I am
confident in IREC's ability to manage the costs associated with
accreditation and certification.
Q2a. Have you reviewed the legislation proposed here today?
A2a. Yes.
Q2b. Do you think it makes sense to create two additional layers of
bureaucracy for the Secretary of Energy to promote solar power or do
you feel it would be easier to just give DOE a grant to promote solar
power? Please explain.
A2b. The Solar Energy Industries Research and Promotion Board, as well
as the Solar Energy Industries Research and Promotion Operating
Committee make sense in that they will be strong advocates for the
advancement of the solar industry. The members of the Board, as well as
the Committee, will be stakeholders in the solar industry and will
provide a platform for sound solar energy initiatives. While an
argument could certainly be made that we are creating more levels of
bureaucracy, in this case, I believe the layers are valid; especially
knowing that (1) no Board and Committee members will receive
compensation for their service, and (2) most, if not all, Board and/or
Committee members will be utilizing the resources, staffs, and
facilities of existing organizations.
Q3. Do you believe solar power needs to be promoted in order to be
successful as an energy resource?
A3. Yes. There is a certain level of complacency that exists in our
society and I've learned throughout the years that an effectively
promoted initiative has positive outcomes. There are many examples to
point to, some of which were identified during the hearing. I truly
believe that an educated public is our strongest asset and right now I
don't believe that the Nation yet fully understands the value of
investing in solar power, especially the younger generation. The same
could be said for other renewable energy resources.
Q4. Do you support the language in the bill that requires private
companies to open their books and records to Members of the Board for
inspection?
A4. I don't have the expertise to adequately answer this question.
Q5. The language of this bill provides for criminal penalties for
release of information obtained under the authority of the Act to ``any
agency or officer of the United States for any purpose other than the
implementation of this act.'' What information do you believe this
language is seeking to protect? Do you agree criminal penalties are
necessary?
A5. Again, I believe I don't have the expertise to adequately answer
this question.
Q6. The language of section 9 requires the continuation of the solar
promotion board and committee should be contingent upon a vote by the
manufacturers and importers. Would you support a referendum prior to
creation of the Board and Committee? Why or why not?
A6. Again, I believe I don't have the expertise to adequately answer
this question.
Q7. What enforcement by the Secretary of Energy do you envision that
might warrant civil penalty for noncompliance under section 10 of this
bill? Is this section necessary?
A7. Again, I believe I don't have the expertise to adequately answer
this question.
Q8. What type of investigation do you believe it would necessary for
the Secretary of Energy to conduct under section 11 of this bill?
A8. Again, I believe I don't have the expertise to adequately answer
this question.
Q9. How will your organization benefit from this bill?
A9. Hudson Valley Community College received a grant from the New York
State Energy Research and Development Authority to establish our solar
program. As a leader in solar training Hudson Valley Community College
will be able to seek additional resources to develop new solar training
programs that are responsive to the industry, as well as expand our
existing program offerings. As the solar industry grows, Hudson Valley
Community College would seek additional funding for solar programmatic
initiatives which include resources for additional faculty, curriculum
development, and enhanced training facilities to react to industry
trends.
Q10. What kind of yearly revenues does the solar industry have which
could be used in a promotion program as envisioned by the legislation?
A10. Again, I believe I don't have the expertise to adequately answer
this question.
Q11. Where does each of you see solar power as a part of the Nation's
energy mix by 2015 by percentage if this bill is enacted?
A11. This bill will go a long way towards making the United States a
national player in the solar power generation industry, and inform the
world that we are serious about renewable energy.
Q12. What is your view on cost sharing of the training programs
between the states and Federal Government?
A12. Again, I believe I don't have the expertise to adequately answer
this question.
Q13. Are the unions opposed to this training bill?
A13. Quite the contrary. The International Brotherhood of Electrical
Workers, for example, is very invested in training their journeyman in
solar installation technology. They see economic growth and job
creation with this bill. One only has to look at New York City's
``Million solar roofs'' initiative to see the impact on job creation as
a valid example.
Q14. Is the draft discussion draft duplicative of any current
programs? If so which ones? What are the metrics that will evaluate
success of the training or solar programs?
A14. A handful of states, such as California, New Jersey, and New York,
have solar training initiatives that have proven track records, but the
United States needs a national program to ensure the type of growth
that it aspires to reach by 2015. A national program will ensure other
states will have the opportunity to enhance job creation in the solar
industry.
Q15. Mr. Sarubbi, you have demonstrated that the photovoltaic program
at your community college is in high demand and has been able to seek
out several business partners. Does the Federal Government need to be
involved to ``spur'' further collaborations?
A15. Absolutely! Our success was driven by a collaborative effort
between a State government agency, as well as national organizations
such as IREC, with the resources and guidelines to establish an
effective solar training program, and an educational institution with
the vision to see the value of this training. The government resources
gave the college the confidence to move forward, which made attracting
support from local solar companies viable. Our growth is still
contingent on procuring resources that would allow the College to
expand its offerings and further develop partnerships. It's all about
confidence. Having the DOE as a sponsor of solar training programs will
spur confidence and ensure industry growth.
Q16. As your program has grown, have you had to advertise your
services?
A16. Interestingly, the College has gained significantly in ``free''
advertisement as news agencies continue to report on the success of our
solar training programs, further spurring interest in the community.
The ``press'' has helped us ``get the word out'' and the College has
been the beneficiary of this exposure. The College also maintains a
website link dedicated to solar training which continues to garner
attention from those seeking information about gaining solar training.
Q17. What we've heard today from a number of experts that explain that
solar technologies are rapidly changing and evolving. Do you offer a
continuing education program to meet these changing demands?
A17. Absolutely! Hudson Valley Community College has a Workforce
Development Institute that seeks to continuously provide training to
meet the needs of industry and solar training is no different. For
example, as state and local building and electrical codes change to
adapt to the changing solar technology, the College provides workshops
for code inspectors to keep them abreast of these latest technological
advances. The College is currently developing ``advanced'' solar
training courses that will be offered through Workforce Development to
keep Certified Installers ``fluid.''
Q18. Has the Department of Energy assisted you in anyway? If so, how?
A18. At this stage I am not aware of any direct assistance from the
Department of Energy.
Answers to Post-Hearing Questions
Responses by Daniel E. Arvizu, Director, National Renewable Energy
Laboratory, U.S. Department of Energy
Questions submitted by Representative Ralph M. Hall
Q1. Are you familiar with the Institute of Sustainable Power? Do you
feel comfortable having them run a certification program? What type of
a fee would you envision would be required for them to ``certify''
workforce training programs?
A1. I am familiar with the Institute for Sustainable Power which
coordinates, develops, and maintains international standards for the
evaluation and qualification of renewable energy, energy efficiency and
distributed generation training providers. ISP has a solid reputation
for the quality of the work it does. I am not in a position to comment
on an appropriate fee for certifying workforce training programs.
I would suggest, however, that the Department of Energy (DOE) Solar
Program be consulted on options for improving training and
certification of solar energy professionals. As part of its Solar
America Initiative, the DOE has created a program to improve and expand
solar installer training in cooperation with the North American Board
of Certified Energy Practitioners (NABCEP). The DOE's efforts in this
area may be of interest to the Committee.
Q2. Have you reviewed the legislation being proposed here today? Do
you think it makes sense to create two additional layers of bureaucracy
for the Secretary of Energy to promote solar power or do you feel it
would be easier to just give DOE a grant to promote solar power? Please
explain.
A2. I will defer to DOE on this question.
Q3. Do you think solar power needs to be promoted in order to be
successful as an energy resource?
A3. As Americans begin to enjoy more options as to where they get their
power and fuel, I believe they need clear, credible and consistent
information about all energy sources to help them make informed
decisions about which options to choose.
Q4. Do you support the language in the bill that requires private
companies to open their books and records to Members of the Board for
inspection?
A4. I will defer to DOE on this question.
Q5. The language of the bill provides for criminal penalties for
release of information obtained under the authority of the Act to ``any
agency or officer of the United States for any purpose other than
implementation of this Act.'' What information do you believe this
language is seeking to protect? Do you agree criminal penalties are
necessary?
A5. I will defer to DOE on this question.
Q6. The language of section 9 requires the continuation of the solar
promotion board and committee should be contingent upon a vote by the
manufacturers and importers. Would you support a referendum prior to
creation of the Board and Committee? Why or why not?
A6. I will defer to DOE on this question.
Q7. What enforcement by the Secretary of Energy do you envision that
might warrant a civil penalty for noncompliance under section 10 of
this bill? Is this section necessary?
A7. I will defer to DOE on this question.
Q8. What type of investigation do you believe it would be necessary
for the Secretary of Energy to conduct under Section 11 of this bill?
A8. I will defer to DOE on this question.
Q9. How will your organization benefit from this legislation?
A9. NREL will not directly benefit from this legislation.
Q10. What kind of yearly revenues does the solar industry have which
could be used in a promotion program as envisioned by the legislation?
A10. I will defer this question to the Solar Energy Industries
Association.
Q11. Where does each of you see solar power as a part of the Nation's
energy mix by 2015 by percentage if this bill is enacted?
A11. This bill addresses, and in some cases expands on, a number of
important areas of solar energy research, development and demonstration
currently sponsored by the DOE. It identifies critical research on
thermal storage for concentrating solar power technologies that will
make those technologies significantly more valuable to utilities
interested in integrating them within their system. It also calls for
continuing studies of that integration with a particular focus on water
issues critical items for successful market penetration of CSP.
I would suggest that the DOE be consulted regarding the additional
demonstration programs the bill mandates for daylighting, solar air
conditioning, and photovoltaics. The DOE is currently expanding its
efforts on demonstration and deployment of distributed solar and
building efficiency technologies, and I believe that commercialization
of these technologies will occur most rapidly if it is pursued within
the context of the broader requirements and opportunities in the
buildings sector.
Together, these various efforts will reinforce the DOE programs to
move solar energy into position to make a significant contribution to
the U.S. energy picture by 2015. The amount of solar power in our
future energy mix will depend on a number of factors, but supporting
legislation can help accelerate the amount we have in 2015.
Q12. What is your view of cost sharing of the training programs
between the states and Federal Government?
A12. I will defer to DOE on this question.
Q13. Are the unions opposed to the training provisions in the bill?
A13. NREL is not qualified to answer this question.
Q14. Is the Draft discussion draft duplicative of any current
programs? If so which ones? What are the metrics that will evaluate
success of the training or solar programs?
A14. I will defer to DOE on the first part of the question dealing with
duplication of current programs. As to metrics for evaluating the
success of training and other solar programs, the major metric for the
Solar Program is the levelized cost of electricity. The attached slide
presents the goal of the solar program to have competitive prices of
electricity in the three market sectors (residential, commercial, and
utility) by 2015. A secondary goal is to have about 4 gigawatts of
installed solar power by 2015.
Q15. In your testimony you state that the ``Solar Energy Program goal
is to reduce the cost of solar photovoltaic technologies so that they
become cost competitive with other sources of electricity in all major
U.S. markets by 2015.'' Are you on track to reach this goal? What major
hurdles would prevent you from doing so?
A15. The current DOE Solar Program in photovoltaics is designed to make
solar electricity cost competitive in the three major markets--
residential, commercial, and utility--by 2015 through the President's
Solar American Initiative. This initiative builds on the experience
with bringing down the costs of solar electricity from successful
programs in Japan and Europe. The program is currently on track to meet
these 2015 targets for the U.S. consumer. Technology investments and
consistent policies are both important, but to ensure success, to
increase the technical leadership of the U.S. in this expanding high-
technology business, and to build a solid technical workforce in the
U.S. economy, the investment in R&D both in the short- and long-term,
must be strong, consistent and sustainable.
Q16. You mention that CSP power plants can be quickly constructed. How
quickly and how much do they cost to build? Are there any NIMBY issues
involved with their siting and construction?
A16. SolarGenix recently completed construction of a 64 MW plant near
Las Vegas, Nevada. Construction of the 64 MW plant took approximately
one year to complete. This matches previous experience in the late
80'slearly 90's where nine CSP plants were built in the Mojave Desert
over a period of six years.
It is hard to predict NIMBY issues. CSP plants tend to be located
in desert regions not ideal for residential development. However, as is
the case in California, concerns have risen over the development of CSP
on sensitive habitats (e.g., Desert Tortoise). As with other forms of
conventional or renewable generation, construction of new transmission
or upgrades of existing transmission can raise regional concerns.
Q17. Are there any CSP plants with thermal storage in operation today?
Are any hybrid CSP/natural gas plants in operation? If not, when can we
expect to see them running?
A17. All of the existing nine parabolic trough plants operating in the
Mojave Desert are hybridized with natural gas, therefore supplying 100
percent of their rated capacity during peak utility periods. Two plants
under construction in Spain (anticipated to be operational in 2008 and
2009) will use 6-7 hours of two-tank indirect molten salt storage.
However storage costs need to be reduced before such plants would be
considered economically competitive.
Q18. How does this legislation fit within the Administration's energy
initiatives? I know that the Administration announced $168 million to
help reduce the cost of solar energy.
A18. I will defer to DOE on this question.
Q19. Has the Administration done a cost estimate of the bill? Page 20
calls for an unlimited authorization. What is your estimate?
A19. I will defer to DOE on this question.
Q20. Solar power has had problems with environmental concerns with
toxic like cadmium used in some photovoltaic cells. Does CSP use cells
that contain these kinds of materials that might cause environmental
concerns? Are there any environmental concerns as to land use, etc.?
A20. Concentrating Solar Power systems use thermal energy to drive an
energy conversion device (steam/gas turbine or Stirling engine) rather
than solar cells. Heat transfer fluids used by some systems can consist
of synthetic oils or molten salts can both be considered hazardous but
have been widely used and permitted in commercial or demonstration
plants in California. Land use can be a concern where plants are being
considered near sensitive habitat areas (e.g., the Desert Tortoise in
California's Mojave Desert). Parabolic trough and power tower plants
require water for cooling (as with conventional generation) although
dry cooling designs have been studied and are being considered for
future plants.
Appendix 2:
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Additional Material for the Record