Tag Archives: ProVision Solar

Island Photovoltaic Permits in Dramatic Decline

Richard Ha writes:

Marco Mangelsdorf, who owns ProVision Solar in Hilo, is one of the most credible commentators I know of in the energy industry. The fact that he owns a solar company has never affected his intelligent analyses. He has no bias but just calls it like it is. I respect his integrity explicitly.

He recently sent me this information about November photovoltaic (PVV) permits, and I got his permission to reprint it here:

[November was the] nineteenth straight month of year-over-year decline. I believe a case can be made that the island’s PV industry may be in a state of terminal decline as far as roof-top PV. It’s hard to see factors that would lead to a sustainable upswing at least in the next several years. With the federal tax credit scheduled to disappear for residential PV as of January 1, 2017 and go down from 30 percent to 10 percent for commercial PV, grid penetration issues and NextEra’s apparent preference for utility-scale PV over distributed generation, the skies seem unlikely to brighten in the near-term for the local PV industry. And forget any immediate relief coming from some magic bullet in the form of energy storage. Ain’t gonna happen no matter how much some commentators predict it along with a mass exodus from the grid. Said pundits have likely never spent any time, let along months or years, living off the grid and the considerable energy, time, resources and conscientiousness that off grid living entails. 

November 2014 PV permits—520, a drop of 50 percent over last year. (November 2013 PV permits—1,040.) 

January-November 2014—5,914, a drop of 51 percent from the same period last year.  (January-November 2013 PV permits—12,163.)  

The number one PV permit puller on the island, Vivint Solar, has seen their numbers take a substantial dive in October and November. Their monthly average January-September 2014 = 92 PV permits.  In October, they obtained nine permits while they pulled 15 last month.  

January-November 2014  

Image003

Image004

Learning From Germany & Others’ Energy Plans: No Free Lunch

Richard Ha writes:

Germany attempted to transition to a green electricity generation more than ten years ago. Today, some of its electricity rates are the highest in Europe, and it is using coal for 45 percent of its electricity. The lesson here is that there really isn’t any “free lunch.”

From Bloomberg.com today:

Merkel’s Taste for Coal to Upset $130 Billion Green Drive

By Julia Mengewein – Sep 22, 2014

When Germany kicked off its journey toward a system harnessing energy from wind and sun back in 2000, the goal was to protect the environment and build out climate-friendly power generation.

More than a decade later, Europe’s biggest economy is on course to miss its 2020 climate targets and greenhouse-gas emissions from power plants are virtually unchanged. Germany used coal, the dirtiest fuel, to generate 45 percent of its power last year, its highest level since 2007, as Chancellor Angela Merkel is phasing out nuclear in the wake of the Fukushima atomic accident in Japan three years ago.

The transition, dubbed the Energiewende, has so far added more than 100 billion euros ($134 billion) to the power bills of households, shop owners and small factories as renewable energy met a record 25 percent of demand last year. RWE AG (RWE), the nation’s biggest power producer, last year reported its first loss since 1949 as utility margins are getting squeezed because laws give green power priority to the grids….  Read the rest

How is HECO going to both lower our electricity rates and increase intermittent power into the grid? Seems we are going to bet everything on natural gas. At $4/thousand cubic feet (mcf), it is very cheap. In Asia and Europe, it’s more than $11/mcf.

What happens when its price rises in 10 and 20 years? Where will we be then? Will we have a competitive advantage to the rest of the world? Or will we be struggling, like Germany is today?

Where will we be 10 and 20 years from now? We should be paying attention to what people like Marco Mangelsdorf, president of ProVision Solar, and others are saying about the PUC’s request for an energy action plan for the state of Hawai‘i.

HECO’s Response to the PUC’s Orders: Is the Media Right? With Marco Mangelsdorf