Wednesday, July 9, 2014

The Future of Solar is Bright

With federal, state, and utility incentives, the residential solar industry is seeing growth upwards of 50% per year.

In 2005, Western Washington University professor, Jack Hardy, started a renewal energy company as more of a hobby. Nine years later, his garage start-up is thriving with two locations and over 130 projects completed last year alone.

Now retired, Jack’s legacy is doing business as Western Solar Inc and under new direction. Josh Miller, General Manager, reported substantial growth in 2013. “We installed the second largest number of projects in the state last year. Our business has easily grown 50% annually since 2009.”

Recently, Miller completed a contract for a 108kW/400 panel installation which will mark the largest array in King County and fourth largest array in the state. This project will take what was once a small town operation and make it into one of the leading solar installation businesses in the Puget Sound.

According to the Solar Energy Industries Association’s (SEIA) U.S. Solar Market Insight Report, photovoltaic (PV) installations increased 41% nationwide since 2012. This pencils out to an increase of nearly fifteen times the installations six years ago, making solar the second largest source of new electricity behind natural gas. To date, there are over 445,000 PV systems operating in the states, with 140,000 of those installed in 2013.

The boost in PV installations created more than 10 new jobs every hour, as reported in The Solar Foundation’s National Solar Jobs Census. Nearly 143,000 workers joined the solar industry in 2013.

SEIA reported that the average price of solar panels declined 60 percent since 2011 making solar more affordable. Rebates and incentives are also making solar more attractive to Washington residents.

The financial incentives available for homeowners currently rank among the richest programs in the United States. Until 2016, there is a 30 percent federal tax credit for residential properties and no state sales tax on equipment or installation until 2018.

Additionally, local utilities offer production rebates. According to the Database of State Incentives for Renewables and Efficiency, Washington has one of the highest performance-based incentives in the world. Grid-interactive systems may receive production incentives ranging from $0.12 to $0.54/kWh or up to $5,000 per year. Multiplying factors of this incentive are based upon the electricity produced using equipment manufactured in Washington State.

Snohomish PUD customers are eligible for an additional one-time credit of $500 for every kWh installed, capped at $2,500, on qualifying units.

The return on investment, once taking ten years, is now closer to five to seven years. With Washington based panel manufactures offering a 25 year warranty and production expectancy of 35-40 years, anyone with initial funding would be hard pressed to turn down switching to solar.

With 50-60% projected growth in 2014, those in the solar industry like Miller are in for a positive fiscal year, making for a very bright future.

Source: Written by- Amanda Brock. Western Solar Inc. Marketing Director. July 2014.