June 18th, 2010

The Unseen Torture of PV Integration in Mass: Waiting for Rebates, Permitting, & Inspections.

BOSTON -

If Kimbo Slice signs a contract with an installer/integrator for a 5kW PV system on his house in MA on Monday, and it takes 2 days to install 5kW, why should Kimbo not be able to turn on his system on Thursday?

A. Commonwealth Solar Rebate Approval: 4-12 week wait

Kimbo knows that he can get up to $5,000 in grant money from the Commonwealth Solar II (CSII) program, which makes his investment cost-effective. What he might not know is that the CSII program prohibits installation prior to the grant being awarded or rejected, per section 3.3 of the CSII program manual.

I’ve dealt with this first hand, having applied for hundreds of rebates through Alteris Renewables Inc. since February 2009. The uncertainty causes issues with (1) equipment purchasing & forecasting, (2) cash flow predictions, (3) project scheduling delays, and (4) risk of losing the building permit application fee.

B. Building Permit Approval: 1 – 4 week wait.

Building Permit applications are the most painful part of any project, mainly because:

1. Most inspectors have no idea what a PV system is or what constructing it entails. Therefore, before they grant their approval, they demand more and more backup documentation. More time dealing with building inspectors equals less profit for the project. >> Solution: The BBRS should mandate training for local inspectors on the new technology and the equipment used for installation.
2. Every MA Building Department has a different application and process, and many haven’t upgraded their basic internal technology. Somerville uses legal-sized carbon copy applications. Waltham won’t accept anything but handwritten card-stock applications.  Every town has a different application, and a different process. This means (1) installers must drive to simply obtain the applications, and (2) the town won’t accept digital versions of the applications. >> Solution: The BBRS should have a standard building permit application that is accepted by every municipality in MA, just like RI does. They should also

C. Commissioning (officially turning on the system): 1-4 week wait

In order to turn on a system, the electrical inspector signs a form, the installer submits it to the utility, and the utility authorizes system commissioning. You’d think that this part of the process would be a piece of cake – the system is finally built and able to be turned on, but paperwork can easily hold up project close-out for a couple weeks. Here’s why:

1. Most MA Inspectors often only work part-time. This adds more wait time to both reaching the inspector, and scheduling an inspection. Note the link above, showing Harwich, MA inspector’s hours: 8:30-9:30, three days a week. Good thing Kimbo doesn’t live in Harwich.
2. MA Inspectors are uncomfortable with PV technology, so they often request (1) the electrician, (2) the construction foreman, (3) and the homeowner to be present. This creates a huge headache for installers trying to coordinate all these people’s busy schedules, and accommodate for the inspector’s schedule. If the inspector blows off this meeting (probably one in ten jobs), the process starts all over again.
3. The MA Interconnection Tarriff allows utilities ten business days to authorize system commissioning. This is absurd. If NSTAR can send me an approval in 24 hours, why does it take National Grid or Unitil a week and a few reminders to do the same thing?

Sadly, a PV project sold today can only be turned on as fast as it can jump through all of these bureaucratic hoops. But, if you’re a salesman, how do you tell Kimbo that he has to wait not three days, not four, but 180? You don’t– it’s easier (and probably safer) to sell him on the best-case scenario, and pray that the project clears every hurdle.

The solar industry should place more priority on decreasing wait time due to paper processing. All the efforts to stimulate and grow the solar industry mean nothing until the system starts producing clean energy. The polar bear’s iceberg will have melted due to climate change (if that’s what motivates you) in the time it takes Massachusetts to mess around with all this paperwork baloney. Not to mention that delays create irritated customers like Kimbo Slice. Refuse to accept “bureaucracy is what it is” as an excuse for inaction. This is a real roadblock to the success of the solar industry.

Please comment if you have any thoughts, ideas, or reactions. Thanks,

Miles

Tagged alteris, incentives, inspection, interconnect, kimbo slice, massachusetts, paperwork, permits, pv, solar |

May 7th, 2010

Finally! A Renewable Energy Lawsuit

BOSTON -

So there’s this lawsuit that just popped up where a Canadian energy company is suing the Massachusetts governments over a law that requires utilities to purchase their renewable energy from Massachusetts based firms.

Basically, I’m curious to see what holds water. I talked to some energy lawyers recently who think the interstate-commerce part of the suit may hold water, but the SREC (that a Solar Renewable Energy Credit) related charges are mostly hot air.

The inter-state issue is very… interesting. I personally find the interstate clause kind of murky, as it’s nice to give states the ability to bolster their own economies, though I suppose there’s a reason for the interstate commerce laws that goes deeper than just this one issue.  And if Cape Wind (the main reason behind the suit, I think) looses out on the added benefit of this particular law, it could put a dent in the ‘financability’ of the project. Then again, this is the first offshore project in the states, I have a feeling the investors know they’re taking a risk to begin with.

As for the SREC issue, many states are currently acting out the same system without problems. There is no exclusion happening, it’s more a ‘if you want to operate in our state, you have to follow our rules.’ You could almost view it as a tax. Trans-Canada might get away with a lower SREC supply component than their competitors as a settlement out of the suit, but I doubt it’ll go too far beyond that.

The final thing here is, the SREC market, while lucrative for solar developers, is a small potato for Trans-Canada compared to the 2.4 billion dollar field of sticks in the ocean that Jim Gordon has planned. The Cape Wind project itself is larger than the entire solar market is expected to be in MA in 6 years.

Anyways, let’s see where this lawsuit goes. Strangely, you don’t see too many in our field. Must be because it’s always been small potatoes. I guess that means we’re growing!

Tagged canada, cape wind, massachusetts, solar, SREC, wind |