Solar energy in the spotlight Solar energy in the spotlight (August 27, 2004)

Businesses encouraged to use green power

By Jon Wiener

Energy issues have bubbled to the surface in California this summer, as consumers have set records for electricity use and seen oil prices skyrocket. Meanwhile, scientists are warning that climate change is going to have a large impact on the Golden State.

Last week, Gov. Arnold Schwarzenegger announced a plan to install solar panels on 1 million new homes, drawing attention to residential uses for photovoltaic cells. But many in the solar power industry say that solar electricity can be an even better deal for business owners.

"It's a no-brainer for a business to adopt it," said Alex Legato, spokesperson for Santa Clara-based solar vendor MC Solar.

Legato wasn't talking about corporate environmental responsibility; he was talking about the bottom line. "It does reduce pollution, (and) there are some positive environmental reasons, but it typically comes down to 'how much does it cost?'"

Between government incentives and savings on their electricity bill, businesses can recover the cost of installation, which ranges from $200,000 to $1 million, in as few as four years.

But according to a survey of local installers, not a single Mountain View company has taken advantage of the benefits available to companies that go solar.

SGI facilities managers looked at using solar power when the company leased its Amphitheatre Parkway offices to Google and moved to Crittenden Lane, said Lisa Pistacchio. But they decided against making a large investment in a new building.

"Because of our leasing options, it wasn't worth it," said Pistacchio.

"(Businesses) may be a little bit more gun-shy," said Elisa Gura, solar-electric specialist for EcoEnergies, a Sunnyvale renewable-energy company. "A homeowner knows they're going to be there 10 to 15 years, and when they sell, it's going to add value to the house." Businesses tend to keep shorter-term budgets, she noted.

In fact, the only major non-residential solar installations in Mountain View are two arrays owned by NASA Ames, purchased in part with a grant from the city of Palo Alto.

The larger of the two systems, capable of producing 5.5 kilowatts (kW), was installed on the space sciences building in July 2001, in the midst of California's rolling blackouts. A 4.7-kW system on the base cafeteria followed a year later. Those two buildings use megawatts of power, but the systems help shave costs during peak demand periods, according to Ron Thompson, a plant engineer for Teculan Inc. at NASA Ames.

The Mountain View City Council is also investigating the possibility of adding solar panels on the parking garage slated for the corner of California and Bryant Streets. The system could provide electricity to the first-floor retail space that council members are hoping draws a small grocer.

Photovoltaic cells use semiconductor technology to turn radiation from the sun into electrons moving on a circuit. They can connect to the electric grid, selling electricity back to the utility company when it is producing more than it is using and supplementing grid power when needed.

Among the incentives available for business customers are a 10-percent federal tax credit and the ability to rapidly depreciate the cost of the system on tax filings. Installations larger than 30 kW also qualify for a state rebate of half the cost of the system.

Schwarzenegger's proposal, announced last week by the state Environmental Protection Agency, would give out $1 billion in rebates and require construction of solar arrays on 50 percent of new homes by 2020.

So many businesses statewide have signed up for the rebate program that it is not accepting any new applicants for the rest of the year, even for its waiting list, according to PG&E's Web site.

E-mail Jon Wiener at jwiener@mv-voice.com

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