Green Wombat

Silicon Valley's Plan to Become Solar Valley

Silicon Valley's nascent solar industry has formed an alliance called SolarTech that aims to make the San Francisco Bay Area the epicenter of alternative energy, much as it became the nation's high tech capital two decades ago. The goal is to turn a niche business into a mass market source of electricity by standardizing solar panel installation, permitting, grid connection, power measurement and financing. "California is the leading adopter of solar power in the United States by far, representing over 75 percent of that market, thus making California the third largest market for solar power worldwide," SolarTech states in a white paper released today. "These embedded economic drivers point to a substantial economic and job growth opportunity for Silicon Valley if we adopt a similar path as the high tech industry in the late 1970s and early 1980s. Silicon Valley is uniquely well positioned to help drive this growth through our abundant resources of engineering talent, world-class educational system, and financial capital."

SolarTech members include solar-cell makers SunPower (SPWR) and Sharp, thin-film solar startup Miasole, concentrator photovoltaic firm SolFocus, installation firm REGrid Power, Northern California utility PG&E (PCG) and the Silicon Valley Leadership Group, the de facto trade arm of the valley's tech industry.

The alliance's white paper discusses the hurdles to widespread adoption of solar power by California homeowners and businesses - from a mishmash of municipal permitting requirements that can delay and drive up the cost of installing solar panels to a lack of statewide standards for connecting solar systems to the grid.  But one of the more innovative proposals from SolarTech involves financing solar energy systems. Even with the rebates offered through California's solar program, it can still cost tens of thousands of dollars to install a rooftop solar array that won't pay for itself in lower electricity costs for another eight to 12 years.

SolarTech proposes the widespread adoption of the power purchase agreement model used by companies like San Francisco's MMA Renewable Ventures (MMA), which finances the installation of huge commercial solar arrays for corporate clients. MMA Renewable retains ownership of the rooftop systems and sells the electricity back to the client at a discounted rate. SolarTech proposes an online market to match up solar power providers and purchasers. The upside for business owners - or even homeowners if the model was adapted for residential solar power - is that they get clean green energy without forking out the capital costs of installing rooftop systems. The solar financiers reap the benefit of renewable energy tax breaks, rebates and tradeable credits associated with the projects.

Lastly, SolarTech wants to radically reduce the time it takes to install a solar energy system and connect it to the grid - now typically 29 to 50 weeks - to five weeks. "We envision Silicon Valley as the leader in developing, delivering, and growing solar power for our state, our nation, and indeed, the entire world, and through this effort, we anticipate helping to deliver tens of thousands of new jobs," the white paper states. "We are committed to nothing short of turning Silicon Valley into Solar Valley."

Wal-Mart: Red States Buy Green Products

What's the difference between a pickup-driving, Budweiser-swilling redneck and a Prius-owning, latte-sipping effete liberal? Not much, at least when it comes to buying environmentally friendly products, according to Wal-Mart. Since April the retailer has been tracking purchases of five eco-oriented products to gauge its 180 million customers' attitudes toward buying green. (The products: compact fluorescent light bulbs, organic milk,  concentrated or reduced-packaging liquid laundry detergents, extended-life paper products and organic baby food.) Today Wal-Mart (WMT) said its Live Better Index shows that 18.62 percent of residents in Republican-leaning states are making green purchases at its stores versus 18.68 percent of shoppers in Democrat-dominated states. (Of course, given the demographic of Wal-Mart's customer base, there's probably far more green blue-staters - those legions of Whole Foods shoppers who wouldn't step foot in a Wal-Mart.)

Wal-Mart has undertaken a raft of environmental initiatives over the past year and it directed its survey results at the 2008 presidential candidates. "Live Better Index Reveals that Red and Blue States Cross Political Lines, Unite in 'Green' State,' " proclaimed the headline on its press release. "The high demand for our environmentally friendly products suggests that the environment will be a hot topic for next year’s election," said Wal-Mart chief marketing officer Stephen Quinn in a statement. In other words, the GOP-friendly company seems to be telling presidential contenders that brown is fast falling out of fashion, even in die-hard red states. "Sales ... reveal that red and blue states are embracing products that help the environment," the company said, "with blue states leading in sales of organic baby food, CFLs and concentrated/reduced-packaging liquid laundry detergent, and red states leading in sales of organic milk and extended-life paper products." 

Braun Goes Green: Energy-Efficient Shavers

These days even the daily ritual of shaving can make an environmental statement. Or so hopes Braun. The division of consumer products conglomerate Procter & Gamble (PG) said today that its line of men's electric shaver chargers had become the first to win Energy Star certification from the U.S. government. Braun says its shaver chargers consume 64 percent less electricity than standard shavers. Based on the number of shavers it sells in the U.S. market, that translates into the annual elimination of about 5.6 metric tons of planet-warming carbon dioxide, according to the company. It's just another example of how simple lifestyle/product changes can add up when it comes to cutting greenhouse gases - and how corporations are competing to give their products a green image. "With environmental awareness at an all time high, and consumers and businesses alike looking for ways to reduce their carbon footprint," Braun said in a press release. While we won't get into the electric shaver vs. shaving-with-a razor-while-the-hot-water-runs debate, Green Wombat notes if you really want to embrace what Braun calls "green grooming," you can just let that beard grow.

Making Energy Efficiency Pay

MMA Renewable Ventures is a San Francisco firm that finances and owns massive rooftop solar arrays for companies that want to power their operations with green energy but don't want to shoulder the considerable capital outlay of installing such systems. Today the MMA Renewable Ventures (MMA) is launching a new business to finance energy efficiency projects. The target: mid-sized companies - regional retailers, grocery stores, manufacturers and the like - that want the benefits but not the expense of high-efficiency lighting, energy-conserving heating and cooling systems and other technology. Here's the deal: MMA Renewable Ventures will conduct an assessment of a client's operations and then arrange for the installation of energy-efficient systems. In return, MMA Renewable Ventures receives a fee based on the resulting energy savings. "The customer takes a look at what they’re spending for energy knowing full well they have equipment in their building that's not being used efficiently," MMA Renewable Ventures CEO Matt Cheney tells Green Wombat. "All the customer wants is saving and doesn’t want to own equipment. We guarantee a certain amount of savings." MMA Renewable Ventures also will do deals where it shares the money saved on energy costs with the customer, who takes ownership of the equipment at the end of a multi-year contract. Cheney says MMA Renewable has "a pipeline of clients" but declined to identify them.

Cheney acknowledges that energy efficiency isn't as sexy as solar but says its a wide-open market, given rising electricity costs and growing pressures to reduce greenhouse gas emissions. It's also national market, with state incentives and tax breaks for companies that make energy efficiency improvements.

Continental: Fly the Carbon Neutral Skies

photo:continental
"Welcome aboard Continental flight 1536 to New York's Kennedy airport. Beer and wine are available in coach for $5 and carbon offsets can be purchased for $10. Correct change is appreciated."

That scenario will hit the skies later this summer when Continental Airlines (CAL) customers will be given the option to pay a small fee when they book their flight online to offset the greenhouse gas emissions from their flight.  Continental follows Delta (DAL), which last month launched the first U.S. airline carbon offset program, charging $5.50 for a domestic flight and $11 for an international trip.

Continental has hookup up with Sustainable Travel International, a Boulder, Colorado, non-profit, to use the carbon offset fees to finance forest preservation and renewable energy projects. "All projects have to verifiability reduce greenhouse gas emissions according to international Kyoto protocol ... or they must be Green-e certified," Sustainable Travel's site states. "Emission reductions represent a physical reduction or avoidance of emissions over what would have otherwise occurred."   

Sustainable Travel president Brian Mullis told Green Wombat that the cost of the offset fee Continental customers will pay is still being calculated. "The greenhouse gas emission calculations associated with Continental Airlines' client's flights will be based on the company's fuel-efficient aircraft," he says. "Taking this approach will translate into savings on the cost of the offsets since Continental fleet generates less greenhouse gas emissions than its competitor's fleets."

For the sake of comparison, carbon credit company TerraPass charges about $10 to offset a round trip San Francisco-New York trip.

Continental execs stress the program isn't just another green marketing gimmick and that the airline has reduced its own greenhouse gas emissions by 35 percent over the past decade by changing its operations and using electric-powered ground equipment. The airline also has placed in order for 25 of Boeing's  (BA) new energy efficient 787 Dreamliner jet. Whether United (UAUA) will roll out a Green Carpet Club and whether American (AMR) and other U.S. airlines follows Continental's lead remains to be seen. But with the European Union proposing to impose greenhouse gas emissions limits on airlines flying to the Continent, they will have to find one way or another to deal with air travel's contribution to global warming.

New Jersey to Replace Utility Fleet with Hybrids

photo: PSE&G
When it comes to being clean and green, California often gets the glory, what with the governator and all those Prius-driving eco-celebrities. But New Jersey - yes, New Jersey - gives the Golden State a run for its money when it comes to fighting global warming. The state offers some of the state's biggest incentives for solar power and today New Jersey's largest utility, Public Service Electric and Gas (PEG) announced it's replacing a quarter of its 5,000-vehicle fleet with hybrids and biodiesel-powered trucks over the next decade. The utility estimated that switching 1,300 cars and trucks to run on alternative fuels will eliminate more than 81,000 tons of greenhouse gas emissions. PSE&G has purchased two of the first hybrid "bucket trucks" (photo above) that use batteries to operate the aerial lift rather than tap the gasoline motor. The utility's fleet of 450 bucket trucks typically keep their engines running while the lift is in operation. Deploying hybrids will take a projected 73,000 tons of CO2 out of the atmosphere and save about 6.5 million gallons of fuel, according to PSE&G. Meanwhile on the West Coast, California utility PG&E (PCG) will be testing an all-electric truck from Phoenix Motorcars, and it and Southern California Edison (SCE), Ford (F) and the Electric Power Research Institute are working on developing a plug-in hybrid trouble truck.

Pimp My Plug-In Hybrid

photo: kennedye
The California Air Resources Board last week handed out $25 million to promote alternative fuels and cars such as plug-in hybrid electric vehicles, or PHEVs.  Among the recipients was ZEV Research, which scored $150,000 to develop a pilot episode for a television series about teams that convert fossil-fueled luxury and sports cars (along with more mundane transportation) to run on electricity. We can see it now: Pimp My PHEV! California allocated $5 million for PHEV programs, including:

• $561,000 to Tesla Motors to develop a commercial battery-charging station to be installed at hotel chains across the state. Tesla's electric sports car, the Roadster, is expected to hit the streets in October. The Silicon Valley car company's proposal for a $961,000 grant to test advanced battery technology for electric cars was a runner-up. (PG&E (PCG), meanwhile gets $175,000 to update an electric charging station at the utility's Davis facility.)
  
• $1.1 million to the University of California, Berkeley and UC Irvine to conduct a market analysis of  PHEVs and other electric vehicles.
• $344,000 to the Electric Power Research Institute and UC Davis to evaluate the performance of various battery technologies.
• $1.5 million for an adopt-a-PHEV program that will place 10 plug-ins hybrid cars with up to 100 households and businesses for a few weeks at a time. UC Davis's Plug In Hybrid Electric Vehicle Center will collect data on how the cars perform and evaluate consumer acceptance and use of plug-in hybrids.

CARB is one of the most powerful environmental agencies in the United States - famous (or infamous) for mandating that 10 percent of cars sold in California be zero emission by 2003 and then subsequently backpedaling under pressure from the auto industry.  What's striking is how CARB now -  through such funding, modest that it is - apparently aims to build a market and infrastructure for electric vehicles first.

The agency last week also dispensed cash for a number of biofuel initiatives, including the construction of biodiesel refineries, cow power projects and the installation of ethanol pumps at gas stations. The complete list is here.