Tag Archive for: solar energy

Alaska power companies look at building community solar farms that households can invest in

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]Two Alaska electric utilities are taking steps that could lead to the construction of the state’s first community solar farms, while a consumer interest group is drafting legislation that could support the efforts.
Advocates say the moves by the Anchorage and Fairbanks utilities could lead to projects that allow any household to invest in solar panels to reap their benefits, including low-income residents who can’t afford to install their own rooftop array like many Alaskans are doing.
Tom DeLong, board chair for the Golden Valley Electric Association in Fairbanks, said participants could invest in a share of a farm in potentially different ways, depending on how the utility might structure a plan. A ratepayer could make a one-time payment upfront, perhaps, or pay a tiny amount over time through a slightly higher electric bill. They could see lower electric bills in the years to come.
“It’s a hedge against rising rates,” DeLong said.
Chugach Electric Association, the largest utility in Alaska, is also beginning to take a new look at the idea of a community solar farm in Anchorage, after the Regulatory Commission of Alaska in 2019 rejected an earlier proposal from the utility, citing problems with details of the plan.
“Our members have expressed interest in community solar, so we are looking at the feasibility of another project,” said Julie Hasquet, a Chugach Electric spokeswoman.
Interest in the community farms, which have been implemented in many other states, comes as renewable use is growing in Alaska, and not just on rooftops. Private companies are undertaking ambitious efforts to build solar and wind farms, while utilities are also pursuing upgrades to the grid to support renewables. Driving factors include new federal tax incentives and uncertainty over future natural gas supply in Cook Inlet, the main source of electricity in Alaska.
[Construction of Alaska’s largest solar project gets underway in Houston]

‘Significant and vocal’ interest
Golden Valley Electric has directed its staff to study the idea of building a community solar array in Fairbanks, after a task force recommended that one be built on utility-owned land, DeLong said.
“We’re a cooperative, we’re owned by our members, and a significant and vocal group has expressed an interest in this,” DeLong said.
The task force recommended that residential ratepayers be allowed to buy a share of a panel to start with, and up to a full panel or more later, to facilitate broad participation in the project.
“We also recommend flexible eligibility that allows members to pre-purchase the panels in a six month or one year plan, in essence a Community Solar layaway plan,” the task force said in a report to the utility board. ”Smaller monthly payments will help accessibility by low to moderate income members in the community solar.”
The task force recommended the utility should quickly file a plan with the Regulatory Commission of Alaska.
The agency would approve how the payment is structured for participants, and would make sure a program does not discriminate against non-participants, DeLong said.

Chugach Electric will be informed by past effort
The Regulatory Commission in 2019 called Chugach Electric’s proposal for a community solar farm “confusing and undefined.” The agency raised concerns that all ratepayers would bear financial responsibility, not just the participants. But the regulators emphasized the state’s strong interest in renewable energy and said it did not want to discourage innovative programs.
That earlier proposal envisioned a solar farm built on utility-owned land in Anchorage, costing $2 million or less, with 2,000 panels. It could have generated about 15% of the power for about 500 participating households. Retail ratepayers could have made a prepaid investment or subscribed monthly, with the energy output of their share provided as a credit on monthly bills over the project’s 25-year life.
That earlier effort can inform this new proposal, Hasquet said. But Chugach Electric has no details proposed for this new round, Hasquet said.
“Understanding the concerns of the RCA with our previous project should help us craft a project that could get regulatory approval,” Hasquet said. “Many factors still need to be determined, including size, scope, and costs.”
[A small Fairbanks company wants to build Alaska’s biggest wind farms]
Chugach Electric recently sent a survey to “the more than 600 members who had shown interest in our 2017/2018 community solar project,” Hasquet said in an email. “We had a list of members who had asked to be kept informed of progress on a project. We believe that is a good place to start on determining the feasibility of a newly designed project.”

Groups working on draft legislation
The Alaska Public Interest Research Group is working with groups such as The Alaska Center to finalize draft legislation that could help enable the creation of the projects in Alaska, if it is approved by the Legislature, said Phil Wight, a policy analyst with the group.
The consumer interest group supports community solar farms because they’re another way to lower electric rates, he said. The Alaska Center also highlights climate benefits as another good outcome, as solar power replaces energy from fossil-fuel sources such as natural gas.
Legislation supporting community solar farms could create jobs, diversify the economy and help Alaska achieve its goal of 50% renewable energy by 2025, said Rachel Christensen, clean energy organizer with The Alaska Center.
[CIRI looks to triple power at Fire Island wind farm]
Wight said it’s a promising time for the projects in part because tax credits in the federal Inflation Reduction Act passed in August could cut project costs in half, or more.
“It’s really about bringing the lowest-cost energy to Alaskans,” he said.

Originally published on November 27, 2022 by the Anchorage Daily News.\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]

Bringing Community Solar To Alaska

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]Renewable energy has become quite the buzz phrase in our world these days. Sometimes it takes other forms; clean energy, green energy, sustainable energy, but it is scattered through ads on radio stations, tv commercials, and even announced over the loudspeakers at airports. Sometimes through all this noise, it is hard to understand what renewable energy means to the average person. 
The Inflation Reduction Act passed this summer included groundbreaking funding for renewable energy projects, as did the Bipartisan Infrastructure Package that passed in the months before. With this new funding, utility cooperatives across the state are (or at least should be) looking for new renewable energy projects to bring onto the grid, which will benefit all Alaskans. 
Transitioning our state away from fossil fuels and into cleaner energy sources creates better air quality, and less pollution to our water sources and wildlife habitat. It will ultimately give us cheaper and more sustainable energy. However, right now in Alaska, affordable renewable energy is more accessible for folks with resources to invest in their small-scale solar or wind projects. It is time for that to change. 
Community solar is a system where individuals can invest in and share the benefits of a solar array not located on their property. Each person who holds a share of the community solar array will see their portion of clean, sustainable energy on their utility bill each month. You can start to reap the benefits of having a solar setup without the upfront cost that so many of us can’t afford. This also opens up solar energy to people who have yet to participate: renters, condo owners, and anyone who doesn’t have space in their backyard or roof for a solar system can join the solar movement. It democratizes the energy transition and allows more Alaskans to contribute to and earn returns from renewable energy. 
While 41 states already have community solar arrays, the great state of Alaska is one of the few without one installation. Many people may not think of solar when they think of Alaska, yet they should. Our winters may be long and dark, but the sunlight hours we have access to in the summer make up for the winter and then some. In fact, for seven months out of the year, Anchorage gets more hours of daily sunlight than anywhere in the contiguous US! 
Community solar is a step forward for our state that can be unlocked with policy change. Our leaders in Juneau can make community solar available to all Alaskans with some simple regulatory changes. Community solar is just one of many great opportunities for Alaska; we have immense renewable energy potential that our elected leaders can and should tap into. This coming legislative session, we can push them to do it. We will keep you updated as the legislative session unfolds on how you can take action to make Community Solar a reality in Alaska.

\n\n[/cs_content_seo][cs_element_gap _id=”5″ ][cs_element_button _id=”6″ ][cs_content_seo]More Hot Takes In A Cold Place\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]

Solar power heats up in Alaska

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[cs_content][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]Households and businesses in Alaska are increasingly producing their own solar power and selling the excess electricity to utilities.
The four major Railbelt utilities from Homer to Fairbanks reported in February that almost 2,000 solar installations are tied into their systems, primarily for small, residential projects.
The numbers have grown rapidly in recent years. That includes in Anchorage, where growth is outpacing several Lower 48 cities, a new study shows.
Solar panel installers, meanwhile, report strong demand for their services. They say homeowners are increasingly signing up after hearing positive reviews from neighbors with their own rooftop arrays.
“In general, solar has been very popular for residential customers who want to reduce their energy bills,” said Chris Pike, with Alaska Center for Energy and Power within the University of Alaska Fairbanks.
Pike installed 12 panels on his roof in Anchorage’s College Village neighborhood a few years ago, something he doesn’t recommend unless people have construction experience like he does.
He cut his annual power bills by more than half, even with trees blocking sunlight.
“It’s what I hoped for and expected,” Pike said. “Depending on your use, you don’t need giant systems to impact your bill.”

Chris Pike, photographed at his home in the Rogers Park neighborhood of Anchorage. (Loren Holmes / ADN)

A research engineer at the Alaska Center for Energy and Power, Pike tracks the number of homes and businesses that produce their own power and sell the excess energy to utilities, under a system called net-metering. The vast majority of those projects are solar panel installations atop homes, cranking out electricity during long summer days.
In the Chugach Electric Association service area that includes Anchorage, close to 600 residential customers had solar installations last year, along with 60 commercial customers, the utility reported in February. Eighty-five new residential projects were added to the system last year alone.
Chugach Electric, the largest electric utility in Alaska, has 92,000 members. So the solar installations are a small part of the utility’s power picture, said Julie Hasquet, a spokeswoman with the utility.
But the utility has taken steps to support more of those solar installations. In February, Chugach Electric requested and received approval from state regulators to expand its ability to allow more solar and other renewable projects through net-metering.
“Increased use of renewable energy is a goal for Chugach and for many Alaskans,” Hasquet said in an emailed statement.
Though the number of Anchorage installations remains small, they have increased rapidly compared to many other U.S. cities, said Dyani Chapman with Alaska Environment Research and Policy Center, a group that advocates for renewable energy and other issues.
Anchorage recently rose to 55th place nationally for installed solar capacity, after ranking at the bottom of 65 major cities in 2015, Chapman said, according to a study from the organization and Frontier Group, a California-based think tank focused on climate and other issues.
“There’s room to grow, but we’re growing faster than a lot of cities, as well,” she said.

‘Business has grown exponentially’

Solar panels sit on Chris Pike’s roof in the Rogers Park neighborhood of Anchorage. (Loren Holmes / ADN)

Falling prices for panels over the last several years is helping stoke interest, even with a slight uptick last year as the COVID-19 pandemic and inflation affected many products, said Ben May, owner of Alaska Solar, an installation company.
But other factors have also offset costs, he said. Programs like Solarize Anchorage, a project involving the Alaska Center and the Alaska Center for Energy and Power where Pike works, have facilitated group installations by multiple households. That allows for better prices.
“We buy them by the container-load now, 900 panels at a time, in the 40-foot containers,” May said.
When May started Alaska Solar six years ago, he’d order a few pallets of solar panels at a time. But the business has grown to 12 employees from one, and he’s doing about 120 installations annually, he said.
“Business has grown exponentially,” he said.
Customers are opting for larger installations than they did a couple of years ago, he said. They’re less skeptical of the technology as solar arrays become more visible around town.
The panels generate lots of energy in summer, making up for the dark winters, he said. Output is strong even in spring, thanks to sun-reflecting snow and electronics that work better in cold, he said.
Also, Alaska’s relatively high power prices have encouraged many people to adopt solar power, he said.
“We may not get perfect sunshine like Arizona, but the electricity we make is worth a lot more,” he said.
On a sunny Wednesday afternoon in downtown Anchorage, two Alaska Solar employees working on a scaffolding platform ratcheted down the final panel on a tall garage roof.
The homeowner there will produce about 50% of his own power annually, May said.
Pike said upfront costs for the rooftop installations can be significant for many homeowners, often exceeding $10,000. But the projects typically pay for themselves in about 10 years, he said. The panels can last 30 years or longer.

Alaska Solar employees Zack Wright, left, and Kevin Blackwell install a solar panel at a residence in South Addition on April 20 in Anchorage. (Loren Holmes / ADN)

Outside the Anchorage area, the major Railbelt utilities report more than 1,300 customers with solar installations. More than 300 of those are within the Matanuska Electric Association service area that includes Palmer and Wasilla, said Julie Estey, a spokeswoman for that utility.
The utility supports more solar installations and knows many of its members value renewable energy for its environmental benefits. The utility has seen “tremendous” annual growth in that area, she said. The pace could continue for perhaps a decade before it becomes a potential issue.
“We can only accept so much variable power on the system before it begins to cost more,” she said. “But we definitely view (the installations) as part of our energy future, and managing it and understanding it better is something we’re working on.”

High electric prices drive demand
Mark Haller, a solar panel installer in Soldotna, launched Midnight Sun Solar in Anchorage a few years ago. But demand was so high on the Kenai Peninsula that he moved his operation and family there.
Homer Electric Association, serving much of the Kenai Peninsula, has relatively high electric prices, Haller said. That’s driving more people to solar power, he said.
“It’s been really fruitful,” he said. “We’re doing about 80 installations a year.”
Most of his customers are homeowners.
“There’s a lot of folks down here that are resiliency minded, too, and they want to do things on their own as much as they can,” he said.
Federal tax credits cut 26% off the cost, which is another motivator, he and May said. The benefits fall to 22% next year, ending in 2024.
Hans Vogel said he’s getting solar panels installed at his two manufacturing businesses in Palmer. He already has a solar installation at his home in Eagle River.
Vogel’s businesses, Triverus and Trijet, are high-tech operations with fairly high demand for energy, he said. With tax incentives, he expects the installations will pay for themselves in five years, maybe less, he said.
The panels will also add value to the buildings if he ever has to sell them, he said. And low energy prices will make the companies more sustainable, he said.
“It’s just a total business case for us,” he said. “We’re committed to being here and consuming energy at this business for a while. So why not take advantage of this power from that big shiny thing in the sky?”
By Alex DeMarban
Originally posted by Anchorage Daily News
April 29, 2022\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]