Energy Highlights in Inflation Reduction Act

In late July, Senators Joe Manchin and Chuck Schumer announced an agreement on a number of issues of contention, called the Inflation Reduction Act of 2022. At this writing, it has passed the Senate and House and awaiting President Biden’s signature.

Here is a summary: https://us.eversheds-sutherland.com/portalresource/inflation_reduction_act_of_2022.pdf.  It includes many diverse provisions, but for this newsletter, I will focus on those related to energy.

There are over 300 pages of energy tax provisions, including:

  • Extension and expansion of the Section 45 production and Section 48 investment tax credits for energy development ranging from renewable power to refined coal;
  • Extension and expansion of the Section 45Q carbon capture and sequestration (CCS) credit, the critical technology that would allow coal-fired power plants to operate with much lower emissions of greenhouse gases;
  • Additional tax credits for zero-emission power production, clean energy production and clean hydrogen production.
  • Extension of biodiesel/alternative fuels credits and inclusion of a sustainable aviation fuel credit.
  • Direct pay for tax-exempt entities, state or local governments, the Tennessee Valley Authority, Indian tribal government, or any Alaska Native Corporation to otherwise benefit when it cannot take advantage of the tax credits above.

The proposed Act provides significant steps to encourage US transportation to move toward electric or zero-emissions technology, both promoting such vehicle manufacturing and providing for consumers to purchase and use electric vehicles. The Act provides clean vehicle tax credits of up to $7,500 for new vehicles and up to $4,000 for used vehicles (with some income limitations). It also eliminates a manufacturing cap that was discouraging all-electric car companies from producing more such vehicles, in part, causing the shortage of zero-emission vehicles vs. demand that we currently have.

One concern in the electric vehicle industry is the availability and security of the electric vehicle supply chain. The Act contains stringent eligibility limits based on where battery components are made, or the underlying critical minerals are processed or mined. A percentage of the value of the critical minerals must be extracted or processed in nations with which the U.S. has either a free trade agreement or recycled in North America. In 2023, this percentage starts at 40% and rises 10% each year until 2027 at which point the percentage will remain steady at 80%. This was done to reduce dependence on Chinese critical mineral supply and encourage domestic production.

The Act includes investment tax credits for projects that build or expand manufacturing facilities to include electric and hybrid vehicles production, ranging from 6 to 30%, if certain conditions are met. The Act also provides $2 billion in grants to retool existing auto manufacturing facilities to manufacture clean vehicles and expands DOE lending authority. The Act provides up to $3 billion to electrify Postal Service delivery trucks.

Many of these energy tax provisions are identical of the previous of the Build Back Better Act, with additions to prop up the coal industry, if coal combustion can be made cleaner. One should consult with tax professionals to determine the differences and the overall implications of the proposed bill. CCES provides this overview, but not with any legal or accounting basis. To explore how the Act will impact and benefit you, discuss with an experienced legal or accounting professional. CCES has the technical expertise to help you evaluate and analyze your energy usage, diversify your sources of energy, and use cleaner and less energy to save you costs and meet “green” goals. Contact us today at karell@CCESworld.com or 914-584-6720.

Preparing Office Space for Millennials

For the last 2½ years, it was COVID. Now it’s competitive employment. These are issues of growing concern for companies in this economy. Companies want to be housed in areas that are attractive to employees, to lure them from their homes, and to bring back the essence of teamwork and meetings. And a big part of this is how to attract millennials, who are accounting for a greater share of the workforce. Facility managers will need to incorporate features in an office’s design and operations to attract millennials. For most designers and managers, this will represent a different way of thinking as younger people have grown up with different ways of approaching information and communication and have different expectations about the work environment than the rest of us. If facility managers do not change to please them, their tenants can lose staff which could put them at a disadvantage and encourage them not to renew their lease and go elsewhere, affecting the building owner’s bottom line.

Not that I am an expert, but here are several things you can do to make your older building more attractive to younger workers.

Technology.  Millennials are the most technologically advanced generation ever, growing up using technology at their fingertips. Thus, they want to see more automated features in the buildings in which they spend time. Consider investing in technology to automate office processes to attract and please younger workers, such as temperature and lighting sensors to keep building areas in use comfortable and well-lit, while not wasting energy in unused areas. Of course, this will also save the building owner energy costs. Remember:  Energy efficient equipment is great but using no energy (when it’s not needed) is even more cost effective.

And one more thing: Think Indoor Air Quality.  Millennials seem to have a thing about indoor air quality (IAQ). Perhaps they’ve been around a lot of schools and homes with poor IAQ. So invest in improving your building’s IAQ and have data to show what you’re doing. Invest in UV lighting, bipolar ionization, or HEPA filters on your HVAC equipment as technology to demonstrate a healthier building environment.

Lighting.  Millennials certainly know and want efficient LED lights. But they’re also more attuned to light that imitates their natural, circadian lifestyle. LED lights exist that imitate the natural daily cycle with light in the blue hue range in the mornings changing to a yellow hue later in the day. Doing research on lights (including allowing natural light into office space, when feasible) that imitate rhythms can improve staff health, energy, and productivity, making the tenant happier and more likely to renew.

And one more thing: De-Lamp.  With LED lamps saving so much electricity, there is a temptation to just put in more lights. But too much lighting can cause glare and stress. Attempt to identify not just underlit, but overlit areas, too, and take out some lights.

Sustainability.  Polls show an overwhelming majority of millennials want to work for companies that care about the environment. Unlike previous generations, they know more and want to be see not public relation statements. Sustainable items like a green roof, solar panels, or EV charging stations are features things that can be implemented even into older buildings to show millennials that the building is in tune with current trends. And of course, these items will also save energy costs, such as reduced cooling and maintenance costs with a green roof. Millennials are a major part of the growth in electric car sales. EV charging stations may make them want to come to the office.

And one more thing: Green Cleaning. The rate of asthma has grown and is one of the great medical issues affecting Millennials. Although the cause for asthma is unknown, reducing the use of harsh chemicals in office cleaning will likely make Millennials feel better, both physically and psychologically.

Diverse Things To Do.  Millennials so want the workplace to have a similar feel to their homes. Having a gym onsite and/or a well-landscaped space to take a walk can help attract young people to a building. Having a diverse cafeteria or kitchen, offering healthy snacks, salads for lunch, and cappuccino and latte will also satisfy Millennials. Whey these are investments in space usage, they can help retention. Here’s an inexpensive upgrade, which I used many years ago: a table just for puzzles (jigsaw, word games, etc.). It was great to take a break from the computer where I stressed out over a report to go for a few-minute break to put a few pieces in a puzzle or figure out some words.

And one more thing: Get ‘em out of their chairs.  Try to put coffee stations, kitchens, printers, etc. far away from most workers, if possible. Get employees to get up from their chairs, walk a bit to get their lattes, snacks, etc. Walking is good and, of course, the chance to meet people, even from other departments, for good exchanges.

CCES has the experts to help you improve your office or commercial space to make your staff – whatever age – and customers and clients more comfortable and productive. Contact us today at karell@CCESworld.com or at 914-584-6720.

EU Labels Certain Natural Gas, Nuclear Projects “Green”

The European Parliament recently issued a directive to allow designation of certain projects involving natural gas and/or nuclear energy as “green”; or put another way, to not automatically label certain natural gas and nuclear energy projects as non-green. Certain proposed projects using natural gas as the fuel of choice or the building of nuclear power plants may be labelled “green” and “environmentally-friendly”, potentially qualifying them for hundreds of billions of euros in grants or subsidized loans. Perhaps, as important, this action gives cover for developers of some proposed projects which some may criticize as environmentally unfriendly or unfriendly for Climate Change impacting the Earth.

The EU, like the US, wishes to minimize “greenwashing”, the practice of exaggerating the positive environmental impacts of a project. The EU’s decision to allow certain projects using natural gas, a fossil fuel, to consider itself “environmentally friendly” and building a nuclear power plant to consider itself “sustainable” because it emits no or minimal greenhouse gases (GHGs) has led to much criticism from the European environmental community which wants to see the complete end of fossil fuel usage as soon as possible and the end of nuclear power as an option.

This decision by the EU was probably influenced by global politics, the aggressive effort to have Europe be independent as soon as possible from Russian oil and gas. If locally-produced natural gas can quickly replace oil (mainly from Russia), that is a good thing in the fighting in Ukraine. The problem is that natural gas is still a fossil fuel and emits GHGs. Once allowing such a project, it would be hard to displace it with a true sustainable replacement because of the initial investment in the natural gas technology. Same thing with nuclear power to generate electricity independent of Russian natural gas. The huge investment in a nuclear plant makes it difficult to pivot to a renewable, but non-nuclear replacement, soon after the war in Ukraine is over. The EU has drawn the line, however, with natural gas and nuclear power; non-Russian coal and Middle Eastern oil are not considered “green.”

CCES has the technical experts to help your US-based facility become truly more “green” and “sustainable” given sources available in the US and get incentives to partially pay the upfront costs. Likely save energy costs and reduce GHG emissions, too. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Overcoming Barriers To Improve Bldg. Energy Efficiency

As has written in this newsletter and other places, improving a building’s energy efficiency leads to:
• significant energy cost savings
• more reliable systems
• happier and more comfortable residents and users
• higher resale value
• lower O&M costs.

A problem for many, however, is finding the funds to implement the strategies to improve energy efficiency. Funding particularly affects people in poorer neighborhoods, living in older homes. While, this can be overcome, in part, by low-interest loans by organizations such as C-PACE, there are other issues disproportionally impacting owners of older buildings, issues of mold, asbestos and other hazards. One cannot implement an upgrade if a hazard keeps a contractor from doing the work. Yet many energy efficiency programs do not compensate building owners for these ancillary, but important and necessary, cleanups. A new program in Connecticut has created funding to help homeowners address those barriers.

Connecticut’s Statewide Weatherization Barrier Remediation Program (https://portal.ct.gov/DEEP/Energy/Conservation-and-Load-Management/Weatherization-Barrier-Mitigation) will pay for the cleanup of mold, asbestos and other health and safety issues that can prevent homeowners from pursuing weatherization projects.

The state’s utilities acknowledge that 25% to 30% of low-income customers cannot take advantage of energy efficiency incentive programs just because of health and safety issues in their homes which must be cleaned up before contractors can, for example, do a blower-door test to check for air leaks or seal up air leaks. However, remediation is unaffordable to many, forcing them to pay higher energy bills for the inefficiencies that cannot be corrected. While existing weatherization programs pay contractors a fee for their time and materials of their projects, homeowners receive no funding for the necessary remediation to allow the project to move forward.

One firm which does some remediation work estimates that costs in small homes average about $6,400 for asbestos removal, $11,000 for mold, and more for buildings with multiple issues.

The new program, with initial funding of over $8 million, is expected to cover the cost of remediating hazardous conditions for up to 1,000 income-eligible households over the next 3 years, drawn from a list of homes that could not participate in state energy efficiency programs due to these issues. After remediation, buildings will have energy efficiency upgrades done through either free or low-cost state or utility weatherization programs, sealing air leaks and installing low-flow showerheads. The State acknowledges that the list of households needing remediation far exceeds the initial funding and certain homes will get higher priority.

CCES has the experts to help you – wherever you are located – determine which energy upgrades would be more effective in reducing your energy usage and costs. We can navigate the systems in your state to get maximum financial incentives to perform the upgrades and can bring in the energy and remediation experts to have the remediation and energy upgrade done properly and reliably. Contact us today at karell@CCESworld.com or at 914-584-6720.

Where To Start To Save Energy Costs

Say you are a landlord or manager of several or many buildings and electricity is not sub-metered (is your responsibility, not your tenants). The recent huge rise in electricity costs is really hurting you, given that most of your tenants are in long-term leases with low annual rent increases and that you probably have not upgraded your buildings to be more energy efficient. How can you save electricity costs under these circumstances?

  1. Lighting.  There is no longer any doubt. Light emitting diodes (LEDs) produce the same amount or more light but use less than half of the electricity of fluorescent or incandescent bulbs. Years ago, there were some question about their viability. But all concerns have been addressed. Clearly, cutting your lighting electric usage by more than half will save you money and not impact operations. Go for it! If that were not enough, LEDs last longer than fluorescents or incandescents (LEDs do not “burn” anything), and thus, stopping work to replace a non-functioning LED is rare, freeing up your Maintenance staff to do other things tenants may be demanding. While LED prices are higher than fluorescents, the difference is narrowing and electric cost savings more than make up for it. LED upgrades commonly have a simple payback of under 1 year. Since LED lights often last 7, 10, or more years before needing replacement, that’s a lot of savings in your budget (“gravy”) after Year 1. LEDs for common areas and cost sharing with tenants who pay their own electric will benefit you.

Bonus tip:  Most utilities and states offer incentives for switching to LEDs. Take advantage of these. However, LEDs is such a good buy, that many utilities are beginning to reduce or even end financial incentives for LEDs. So don’t wait; upgrade to LEDs now – this year – before incentives disappear.

  • Appliances.  Given their frequent use, appliances in buildings can be significant contributors to energy usage. Refrigerators are the biggest ones. While a user may open and close a refrigerator only a few times a day (for meals), we forget that it is on using electricity to cool or freeze food 24/7, even when away on vacation. It is a big electricity user. Other common devices can be “electricity” or “gas” guzzlers, too (clothes washers and dryers, computer equipment, even coffee makers and microwaves). Many manufactures make lines of appliances that have built in features to minimize the amount of electricity or natural gas needed (for example, the “sleep” mode of a laptop). At a minimum, you should procure appliances with the ENERGY STAR label, as they have been shown to reduce energy usage by 20% or more compared to average models due to their built in features. You don’t have to do anything. Just buy and operate them. Or you can go further and research specific models that will do the job you want and use minimum amounts of energy; manufacturers of such equipment highlight them on their websites. While energy-saving equipment may be more expensive upfront compared to average brands, the energy cost savings will make up the difference in a short time, usually under 2 years. If the typical refrigerator, etc. operates 15-20 years, that is also a lot of “gravy” for you.

Bonus tip:  Work with your Procurement Department on this. Guide them to research and find the most energy efficient models of necessary equipment. And let them work their magic to find bargains or buy efficient equipment in bulk so that the energy saving equipment may cost the same as “average” models.

  • Heat Pumps.  What are these? These are devices that move heat from one place to another. In the winter, it takes heat from the outside and moves it into a room (yes, there is heat outdoors, even on a freezing day!). In the summer, it takes heat from a room and moves it outside. This takes electricity to achieve, but heat pumps use less energy than, say, a boiler combusting natural gas. It is easier to move heat than to produce it! Heat pumps have now been perfected to work effectively even in cold climates. Heat pumps can help a building become all electric, which is cheaper, better for the local air, and needs less maintenance than combusting a fuel. Manufacturers are developing low-cost, easy-to-install heat pumps for easy, reliable building retrofits within a standard window frame. For a large, multifamily building, installing many such units will save significant energy and O&M costs of a boiler.

Bonus tip:  Look up and contact your local utility or state or county energy agency. They are aware of heat pumps and likely have programs to answer your questions and provide financial incentives for installing heat pumps. They also may have a list of experienced, vetted vendors. Look through their information as you are doing your homework.

According to the DOE, buildings account for nearly 40% of the nation’s energy usage and that 75% of the 130 million buildings in the US will still be standing in 2050. Thus, upgrading existing buildings to be more energy efficient will be necessary to keep up with and manage rising energy costs. Start with these options to get off to a good start and save energy costs at the same time.

CCES has the technical experts to perform a full energy audit to determine a host of strategies to reduce your energy waste and costs, while maintaining current operations of your building. We provide site-specific technical advice to help building owners of many types and locations to reduce their energy costs and waste. Contact us today at karell@CCESworld.com or at 914-584-6720.

Supreme Court Finds USEPA Must Find Other Ways To Regulate GHG Emissions

In late June, the US Supreme Court overturned the D.C. Circuit Court of Appeals’ decision that had invalidated the 2019 Affordable Clean Energy (ACE) rule and reinstated the 2015 Clean Power Plan (CPP). The Supreme Court ruled that USEPA overstepped its authority, granted by Congress when it enacted the ACE and attempted to regulate not only the amount of emissions emanating from individual coal and natural gas power plants using Section 111(d) of the Clean Air Act (CAA), but also whether coal and natural gas power plants should continue to operate at all. The Court found USEPA’s admitted attempt to shift the way power is generated in the U.S. from coal, oil, and natural gas to “renewables” to be a decision of economic policy and public health that is outside USEPA authority, which is to limit emissions. Only Congress can regulate or delegate to others such matters. The Supreme Court went further finding that the CAA does not contain an explicit delegation of regulatory power to USEPA. While this ruling is a setback for regulating greenhouse gases (GHGs) in the short-term, this ruling may result in new claims against the USEPA and other federal agencies that they are without power to regulate other major questions, affecting many areas of American life, from drug safety to banking.

Delegating rules to specialized agencies is the way many federal government functions have occurred for nearly 100 years. When the country was born, life was much simpler. America was an agrarian country with regulations also needed for business and transportation, as well. This was something that the Founding Fathers thought was sufficient being done through Congress and the President. However, as new issues and technologies sprung up, it became apparent that technical matters beyond the understanding of Congress necessitated agencies run by specialists in needed fields to create and enforce specific rules that would take Congress a long time to promulgate. Thus, agencies such as the SEC and FDA and others were formed to specifically regulate the stock market, food and drug safety, etc. Items that were not impacting the US in its early days. Congress would provide guidance to the agencies on how to proceed and develop and enforce rules, but Congress would not be concerned with day-to-day matters. However, this ruling, while focused on how the USEPA regulates GHGs also calls into question the whole authority of agencies over many other matters.

Getting back to the ruling, the USEPA believed it has two ways of regulating GHG emissions through the CAA, one is to require a certain level of control technology to require the power plant to reduce its GHG emission rate. The other approach is to select an allowable GHG emission rate so onerous that certain types of power plants (coal-fired, oil-fired) would be unable to meet that emission rate limit and thus have to shift to another source, such as renewables. This is what the Supreme Court ruled was beyond the authority of the USEPA as an environmental agency, being an agency that enacts economic-altering decisions.

Congress passed the CAA with guidance on how the USEPA were to pass air pollution laws in the CAA. Sections 111(b) and 111(d) of the CAA direct USEPA to establish standards of performance taking into account factors, such as technologies for emission reduction which have been demonstrated and develop emission limits that reflect that.

According to the Supreme Court, the emissions limit established in the ACE for existing power plants was stricter than the cap imposed on new power plants. USEPA’s own modeling concluded that the ACE would result in billions of dollars in compliance costs, including higher energy prices, require the closing of dozens of coal-fired power plants, and elimination of many jobs. A regulation that would have such monumental effects beyond just reducing emissions is beyond what an agency should be responsible for without specific authority from Congress. The USEPA can regulate GHG emissions, but not in such a way to change the economic system of an industry.

The immediate impact of the decision is that the Trump era CPP would be the standard for GHG emission regulation, bringing relief from certain requirements in the ACE. As this is written, it is unclear how the USEPA will respond, but certain new GHG regulations conforming to the CAA will likely be crafted, focusing specifically on reducing GHG emissions and not centered on power plant operations.

As noted earlier, this precedent may be used to vacate decisions made by other agencies, such as OSHA vaccination requirements without authority from Congress.

Please note that this evaluation of a court decision is written by a non-attorney. Please do not act on anything written here. Please retain experienced legal counsel to decide on actions related to this ruling and how it potentially affects your company.

CCES has the technical experts to help you evaluate your GHG emissions and help you establish a beneficial program to reduce GHG and save energy costs. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Summertime Is The Time To Review and Maintain Your Systems

“Summertime, and the living is easy”, says George Gershwin, and who can argue? Especially as we come out of the worst of the COVID lockdowns, everybody feels the need to go out, enjoy, catch up on trips not made and family and friends not visited these last 2+ years. But your facility is still operating, and your equipment and systems still need to work reliably all year round. Even if your facility or office slows down a little in the summer, your equipment and the way they work together (your systems) need to be reviewed and maintained. Summer, with perhaps fewer day-to-day pressures, is a good time to do this. Like going to the doctor for an annual check-up – even if you don’t feel sick – performing an annual review and maintenance can allow your equipment and systems to perform at its best and address problems before they become too serious and risky to operations. And having a good, reliable maintenance program will enable your equipment to last longer, deferring and reducing future big capital expenditures.

Remember, systems operate in a dynamic environment, affected by operators, processes, technologies, even temperatures and humidity, which may not affect its operation openly (it turns on and off at the right time), but may affect it in subtle ways, affecting long-term performance and viability.

Thus, maintaining healthy systems, like the human body, requires careful monitoring and tuning. Here are 3 things to evaluate as you analyze and monitor your systems.

  1. Note all changes. Systems usually work based on a set of criteria. For example, the boiler turns on and makes steam when the temperature as measured by the thermostat drops below a certain setpoint and turns off when it is exceeded. Has the program been changed due to the likings of the people in those rooms? Is the feed to the boiler (fuel, air) been changed either by aging equipment or other factors? That’s just one example. I once worked on an air emissions inventory project at a chemical plant and studied the formulas, the exact steps in producing several compounds. Checking with the guys working the floor, they changed some of the procedures out of convenience and never told the engineer or their supervisor. The yields were the same, so nobody noticed. While there was no direct effect on the product, this led to red flags as change had been introduced and a study of their effects on all areas was not done.

Even more basic, who is in charge of operating your different systems? Has a particular person been replaced in the last year and if so, does the new person operate the system as the as competent? Loss of key knowledge can affect long-term equipment performance.

  • A holistic approach. Summertime and its slow pace at the plant is a good time to do a total holistic review of your systems. Is this system still the best one to achieve your goals? Are there better approaches to achieve the business goals? Have new laws been promulgated affecting this system (environmental, FDA, etc.)? Is your system able to account and monitor compliance? Are they keeping up with the changes in regulations? And there is workflow. Does the system work within your changing workflow, given the need for product and availability of labor and resources (supply chain, energy, water)? Can changes be implemented to improve yield, work with fewer resources, and/or hasten your results without affecting quality? How do changes in equipment affect the whole system? In other words, is this still the most effective system?
  • Look to the future. We all know that technology will change and improve over time. Be aware of technology changes affecting your systems. Read newsletters of technical changes. That does not mean that you should jump at the first change in technology. Replacing your systems with new ones certainly needs careful study to determine whether it is really worth the change to do. But spend some time to be aware of changes and consider upgrades, the benefits and potential effects on hardware, software, operating systems, IT, conveyance, communications, and, of course, the quality and quantity of the ultimate product.

Enjoy the summer and its easier pace. But take some time to assess your systems, ensure they are in good health, head off potential problems, and look ahead to the future. It may not benefit your company greatly right away, but will likely be very beneficial in the long run.

CCES has the experts to help you evaluate and analyze your energy systems and better ensure they are productive for your company at the least cost and greatest reliability. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Can Solar Power Make Sense for Small and Medium-sized Businesses?

Solar energy can be a clean, sustainable source of electricity for any entity. The source is free (the Sun), unlike having to pay your utility who is buying electricity made from combusting oil or natural gas in a conventional power plant. Advances in solar panels enable it to be used to generate power even if the Sun is not out fully.

Many think of solar panels as some fancy technology just for large, wealthy companies or those with a lot of space. But no. Smaller and medium-sized firms can benefit and save money, too.

If you have some rooftop or other space that has no other use, solar panels can be installed and electricity generated to displace some you buy from your utility. Here are some reasons even small businesses should go solar:

  1. Cost savings.  Harnessing solar energy and using it to power your business will lower your costs. The source is free and plentiful (unlike gas/oil). Your savings, of course, will depend on the number of panels and your electricity usage. If you have limited space, solar panels may still work. Advances are improving their efficiency every year. In many locations, if you produce more electricity than you use, you can sell the surplus to your utility and get paid by them as a provider!
  2. Low Maintenance.  We know that maintenance is a big issue for smaller firms. It is difficult to have workers diverted from their roles to fix things. Well, after installation, solar panels are low maintenance. There will be little need for O&M to maintain them at all. Most solar contracts require the supplier to service any issues for 20 or more years. Your staff will not be diverted from needed projects!
  3. Reliability.  Solar energy is reliable. As long as the Sun is shining – even for a short amount of time – panels will generate electricity. The amount of power in a year’s time can be predicted fairly accurately; long-term climate data shows that many areas get about the same amount of Sun every year. The Sun is an unlimited energy source, which will continue to generate electricity for your business in the long term.
  4. Reduced Greenhouse Gas Emissions.  The more electricity that can be generated by renewable sources (solar, wind, geothermal, etc.), the less fossil fuels are combusted and less greenhouse gasses (and other, more directly toxic compounds) will be released into the atmosphere. If your firm has sustainability goals, solar energy is a great way to reach them. Being more energy efficient is excellent but getting energy with zero carbon emissions is even better.
  5. Energy Independence/National Security.  As we see in the news, relying on fossil fuels can exacerbate many political and financial items. Being less dependent on foreign oil or natural gas is important. We are seeing a war in Europe causing strains on existing fuel supplies leading to high prices. Installing more solar power can lessen your need for oil and gas absorbing these blows.

So, What To Do?

I hope this discussion has convinced you to at least consider solar panels at your company, even if you are small. What you should do next is plan for where you may put the panels, whether it be on a roof, over a parking lot, or as a “farm” in unused areas. Therefore, it is important to consider the space that panels will take up and whether you have that space that otherwise may not be constructive.

So if you are ready to seriously consider solar panels, research and contact one experienced, nearby solar specialist. Most will do a free, no-obligation assessment of your site to see if there are issues that might prevent solar panels from being useful, such as shading from surrounding trees or a weak roof. Since most panels are sold over time, it is not in the solar firm’s interest to recommend a sale that is not viable. If the application is viable, the firm can prepare a bid of cost and energy savings. If you reach that stage, get a second or third solar bid. Review the bids and go forward! There are two approaches. One can buy the solar panels outright and the company gets the entire savings from the electrical output from the panels. Or one can lease the panels. The advantage is that you get panels installed, ready to generate electricity for no money down. You pay the solar firm a cost per kWh of electricity produced, usually 25 to 35% less than you pay the utility. Choose which approach you prefer.

And good luck and reap the benefits from solar panels if you have the room, even if you are a small company. 

CCES has the experts to advise you on solar panels and other renewable energy sources and energy efficiency. We do not sell solar panels but we can be your manager to get you the best deal (or no deal if applicable) and ensure they are installed properly. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Solar Panels: For Success, Some Items To Plan For

Ah! So much good news about solar photovoltaics (PVs). It is recognized by practically everyone now as the way to go. Fossil fuel combustion is on its way out in time. People and businesses see that solar and other renewable technologies makes sense, using something in nature that is free to produce electricity that produces no toxic nor GHG emissions. Solar farms are already cheaper to build and operate than proportionally-sized fossil fuel-fired plants, and with some improvements in electric storage technology, solar and wind will become “no brainers”! That does not mean that solar panels are perfect; that they are without risk. Yes, strongly consider adding solar panels to your roof or parking lot or open field. But be aware of some potential problems that can negatively impact your system, so that you can properly prepare.

One risk involving solar panel utilization is fire. Of course, this is risk in any electrical system. Solar PVs cannot start a fire by themselves. However, overheated components may. A related concern is if there is a fire nearby, emergency personnel may have a risk of electric shock from solar panels. Many solar panel systems are designed to automatically shut off during an emergency.

Solar panels on roofs may cause damage to a roof and, therefore, result in water intrusion. Thus, one should not just go to contract to install solar panels on a roof without checking first with the solar panel provider and even an outside roofing consultant, asking the question of what are the chances that the roof will either not be able to hold up the panels or will be damaged by freeze-thaw cycles over the next 25 years. Be sure to take into consideration accumulated snow and ice adding to the load from the solar panels. Also, anticipate worst case water accumulation on the roof (ponding) and how that may impact the roof and the operations of the solar panels. Nobody will guarantee no leaks or no roof damage going forward 25 years. But you should get an idea of the odds of the roof lasting that long without an intrusion. Certainly, implement any recommendation of either vendor type to prolong the life of your solar panels and roof. The good news is that solar panels lately on most roofs require fewer insertions into shingles and, thus, are easier to temporarily remove to access and repair a roof. And then reinstalling the panels in place.

Another risk to be aware of and prepare for is damage from extreme storms. Might the solar panels become projectiles in a severe storm with high winds or a hurricane? Be aware of unusual storm types in your area and work with your solar vendor to design and install them to withstand the worst weather of an impact. Does your homeowners or commercial building owners insurance cover a catastrophic result involving solar panels, including business losses if the building becomes unusable temporarily?

If you are planning for a solar farm, you need to have sufficient land that otherwise has little use. Might there be environmental risks from installing solar panels on this land, such as the loss of grass or trees and the re-routing of storm runoff? What might its effects be on wildlife and human neighbors in the are. Be sure to spend time assessing these issues and ensure that no serious effects or flooding will result in its presence.

Now here is another potential risk that seems pretty rare and innocuous, but has affected some systems. Roof-mounted solar PV systems could attract animals. Panels represent an excellent shelter for small animals that can get underneath from bigger predators and from storms. There have been reports of squirrels and other small animals nesting under a solar panel. Animals staying around too long can damage shingles and thereby cause a roof to leak. Guards that keep small animals from going and staying underneath a panel exist. You may want to consider including these in your solar PV design (and the added weight and complexity they cause). 

I don’t mean to pour rain on the parade. We certainly encourage you to consider installing solar PV on roofs or solar farms on vacant land. But it is not a panacea; all technologies have some risk. Be aware and plan accordingly and reap the benefits.

CCES has the experts to help you decide whether solar PV or other renewable power is right for your facility and bring in the experts to design and ensure that the system works for your maximum financial benefit. Contact us today at karell@CCESworld.com or at 914-584-6720.

Federal Government Sends Strong Signals For Offshore Wind Development

The current US administration recently announced the goal of producing 30 gigawatts (30,000 megawatts) of offshore wind energy by 2030 incentivized by a tax credit for offshore wind energy farms that begin construction by 2025. As a result, wind developers are requesting and bidding for government leases of offshore space to develop such wind energy farms.  

Auctions for leases for offshore development in New York and the Carolinas in 2022 alone brought in record winning bids (billions of dollars collected by the Federal government), indicating that the economics are right for large wind farms to help electrify large urban areas by the coasts which have limited space for solar or other renewable or other power (traditional power plants). Given the goal of moving the US away from fossil fuels and toward electrification, which potentially can be “cleaner” (emit less greenhouse gas emissions), it is important to provide more and clean electricity especially to big cities which tend to be near coasts. Offshore wind certainly checks off these boxes. Electricity does not come from oil or natural gas, which must be found, purchased and transported, but from a free source, the wind, making it cheaper than traditional power plants.

Offshore wind development is recognized as a good source to develop clean power with the development of reliable floating wind turbines, the large amount of available space to place such turbines, and the large amount of consistent wind found in offshore areas. Placement of turbines may be an issue as winds increase the further offshore one goes being tempered by the need to carry electricity generated further to the shore. 

In addition, a major increase in actual offshore wind energy development will have the additional economic benefit of a boon in construction, including generating a large number of jobs, which is good for the tax base of the coastal areas. Some may have the vision when thinking about offshore wind farm development of offshore drilling for crude oil. But, clearly, offshore wind farms have much lower environmental risks and impacts than offshore drilling.  

CCES has the experts – no, not to design and build offshore wind farms – but to advise a firm on the viability of switching to renewable power for your business or building. We can advise you if it is wise and beneficial or not and how to prepare for renewable power. Contact us today at 914-584-6720 or at karell@CCESworld.com.